CFTC Investigation Jab Costs BitMEX $85 Million Within 24 Hours - Today's Gazette - Cryptocurrency, Bitcoin News
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CFTC Investigation Jab Costs BitMEX $85 Million Within 24 Hours

BitMEX

Cryptocurrency

CFTC Investigation Jab Costs BitMEX $85 Million Within 24 Hours

Few days back, there was widespread announcement that the U.S. Commodity Futures Trading Commission (CFTC) is allegedly creating processes that is probing, fast-checking and questioning BitMEX to discover if the exchange has broken policies and rules that disallow United States traders from patronising the platform.

The report has resulted in investors banking on the exchange to move out nothing less than $85 million within 24 hours, an outflow that is over 6 folds of the cash inflow into the exchange.

BitMEX, the largest Bitcoin (BTC) margin trading platform saw on-chain in flow of $12 Million and an outflow of $85 million, with $310 million moved out in 30 days.

The 24hour outflow is higher than that of Binance, Bistamp, Bittrex, Poloniex and other big cryptocurrency exchanges.

The sudden spike in outflow on the exchange is no doubt orchestrated by CFTC’s investigation announcement, which on Friday, Bloomberg quoted an anonymous source as saying it is going to be a “months-long” probe.

Note that BitMEX is not registered with CFTC but resident in the Republic of Seychelles. CFTC forcefully told BitMEX, to purge North American users out of its platform.

CFTC did this due to a letter sent by the Canadian financial regulator where BitMEX was referenced as an unlicensed platform breaching regulatory policies and procedures.

There has been continuous attack on cryptocurrency platform lately. US regulators have been clamping down on crypto trading firms in recent months.

Not long, Bittrex and Poloniex, de-registered few tokens that may fall within what the Security and Exchange Commission call “Securities”.

Earlier, BitMEX was attacked by economist Nouriel Roubini for allegedly involving in systematic illegality.

The anti-cryptocurrency commentator accused BitMEX of aiding and abetting Iranian and Russian criminals and terrorists. This is not the first time cryptocurrency exchanges are accused of conspiring with terrorists to move funds across-borders.

The economist quoted an unnamed source in BitMEX, saying the exchange engages in aiding money launderers.

Meanwhile, the probe has no effect on the market situation at the moment as Bitcoin continues to trade around $10,600 at the time of writing.

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Olayode grows businesses and develop ideas! He has made meaningful guest contributions to Huffington Post, Oracle Times, The Independent Republic and a host of other tech platforms.He's a blockchain enthusiast, with love for international politics.

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