Cryptocurrencies

When will BitMEX’s Bitcoin (BTC) hemorrhage end? – Cryptocurrencies

Is BitMEX guilty, wrongly accused, innocent? It is up to the American “Justice” to decide on its fate. Will the American judicial machine succeed in crushing the Seychelles-based exchange? Is the platform living these last days?


The deserted crypto paradise

The nightmare only does how for BitMEX and its founders. The Commission Futures Trading Commissionot (CFTC) and the Department of Justice accuse BitMEX to operate as an unregulated entity in the United States and to violate anti-money laundering law.

CEO of BitMEX, Arthur hayes and the 2 other co-founders of the exchange, Ben delo and Samuel reed, are also prosecuted in criminal proceedings by the public prosecutor of New York.

The markets unsurprisingly reacted negatively to the news; most cryptocurrencies have seen their price collapse.

Many bitcoiners have deserted the exchange: according to data from Crystal Blockchain, nearly 45,000 Bitcoins (BTC) have been removed from the platform since the announcement of the CFTC.

BitMEX Bitcoin BTC balance withdrawal

The woes of BitMEX have however made people happy: Gemini, Binance, OKEx and Huobi are the main beneficiaries of the legal woes of the exchange.

In fact, in less than 48 hours after the announcement, more than 20,000 BTC have been transferred to these 4 exchanges.

Towards a phantom platform

Following Black Thursday, BitMEX had already recorded a significant loss of users: during the 6 months that passed until this indictment, nearly 100,000 BTC would have been removed from the platform.

Nonetheless, the withdrawals of the past 2 days are of unprecedented magnitude. At this stage of the investigation, it is difficult to know the future of BitMEX.

The exchange could go bankrupt and disappear, but don’t bury it too quickly.

CEO of Blockchain Intelligence Group, Lance Morginn, indicates that the likely outcome would be a financial penalty with payment of fines.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

BitMEX is emptying itself. It might even be surprising to see users still staying on the platform – perhaps out of a spirit of distrust of the US authorities? If the US “Justice” manages to shut down the platform, the question of the decentralization of exchanges will then be called into question again. A central power capable of deciding the future of a DEX, admit that all this is not very coherent. If you are looking for a good model of decentralized blockchain and crypto project, try closing Bitcoin (BTC): you understand?

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