Bitmex has seen net outflows of $73 million worth of Bitcoin in 24 hours. This followed reports that the CFTC was investigating the exchange for allegedly servicing US traders.
Panic Leaving Or Business As Usual?
The outflows were first reported in a tweet from London-based Token Analyst. Most of the listed exchanges (Binance, Bitstamp, Bittrex, and Poloniex) have similar amounts flowing both in and out. However Bitmex is notable for its disparity, with only $12 million coming in, whilst $85 million has flowed out.
See more at https://t.co/6AFFM1D63p
— TokenAnalyst (@thetokenanalyst) July 20, 2019
Some speculated that this was due to panic leaving. News broke yesterday that the Commodity Futures Trading Commission (CFTC) is allegedly investigating the exchange. However, many countered that considering the volume of BTC on the Bitmex platform, it perhaps wasn’t such a being deal. Certainly there is historical precedence for these kind of figures.
So What’s The Potential Panic?
Well, the reported CFTC investigation revolves around whether Bitmex was providing services to US traders. Because cryptocurrencies were ruled to be commodities in the US, any platform allowing trading by US citizens needs to be CFTC-registered.
The platform’s terms of service do list the US as a restricted jurisdiction, and customers have reported that their accounts have been shut down on suspicion that they were US customers.