BitMEX pulled $73M from its platform in less than 24 hours right after the reports about the CFTC investigation emerged in almost all altcoin news websites.
The probe reports were first reported in a tweet from the London-based Token Analyst and most of the listed exchanges such as Bittrex, Poloniex, Bitstamp, and Binance have similar flowing amounts in and out. However, BitMEX is popular for its disparity where only $12 million are coming in whilst $85 million was flowed out. Some crypto users were speculating that this occurred due to the panic leaving. The news that broke out yesterday that the Commodity Futures Trading Commission is allegedly investigating the exchange is the reason why BitMEX pulled $73M from the platform.
Many believe that with that big of a volume of BTC on the BitMEX platform, this isn’t such a big hit after all but there sure is a historical precedent for these kinds of numbers. The reported CFTC investigation aims to resolve whether BitMEX was providing services to the US traders. Because cryptocurrencies were ruled to be commodities in the United States, any trading platform that allows trading for US citizens has to be registered with the CFTC. The terms of service of the platform list the US as a restricted jurisdiction so the customers reported that their accounts have been shut down because there were US customers involved.
However, most of the crypto traders have no problem setting up a VPN just go get around the jurisdiction and even the Binance CEO is among the many who advocates the use of VPNs at all times. The recent outflows from BitMEX represent the American traders who withdrew the funds from the exchange in order to keep them from the regulator but of course, this is not certain. As noted in the latest cryptocurrency news, some suggest that the amount of BTC will get to the spot markets again but there is no sure evidence for this. Even if this amount were to be sold off, it should not cause a massive change in the price of Bitcoin.
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