Crypto News
4 years ago

19% of All Bitcoins Stored On BitMEX Withdrawn After The CFTC Charges

Jordan Lyanchev Oct 2, 2020 11:40
Following the controversial developments yesterday, cryptocurrency traders have withdrawn over $336 million worth of BTC from the derivatives exchange BitMEX.
  • Recent data revealed that cryptocurrency traders had withdrawn the first batch of 23,200 BTC (worth over $240 million) from BitMEX in the initial hours following yesterday’s developments.

 

  • This substantial amount represented about 13% of all bitcoins held on the popular Bitcoin derivatives exchange.

 

  • The Glassnode data indicated that this is the “largest hourly BTC outflow from BitMEX” since the company keeps track. 

 

Bitcoin Withdrawals on BitMEX. Source: Glassnode

 

  • The withdrawals accelerated in the following hours. The total amount grew to 32,200 BTC (or 19% of all bitcoins stored on the exchange) in three batches. Glassnode updated that the latest withdrawals of 6,000 bitcoins ($63 million) occurred minutes ago.

 

  • The significant withdrawals come as a direct consequence of the major news that broke out yesterday. The US Commodity and Futures Trading Commission charged the owners of BitMEX, namely Arthur Hayes, Benjamin Delo, Samuel Reed, and Gregory Dwyer, with illegally operating the cryptocurrency derivatives platform and anti-money laundering violations.

 

  • The Acting US Attorney for the District of New York, Audrey Strauss, also indicted Hayes, Delo, Reed, and Dwyer for violating the Bank Secrecy Act and conspiring to violate the same Act. 

 

  • BitMEX issued an official response, in which the exchange “strongly disagreed with the US government’s heavy-handed decision to bring these charges.” The company also intends to “defend the allegations vigorously.”

 

  • Despite the BitMEX response, the cryptocurrency field felt the adverse effects almost immediately, and prices tumbled. 

 

  • The cryptocurrency community also had a controversial reaction to the entire case. Some claimed that it’s bad for the industry, while others believe it could have a positive impact in the long run. 
Share This Article
Jordan Lyanchev

Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017 and now serves as CryptoPotato's Assistant Editor-in-Chief. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

Tags: BitcoinBitMEXCFTC

You Might Also Like

Top Ripple (XRP) Price Predictions as of Late

Bitcoin Whales Bagged $2.8B Worth of BTC in Day: CryptoQuant

DOGE, SHIB, PEPE Among Top Performers Daily, BTC Rises to $63K (Weekend Watch)

Former FTX Exec Agrees to Transfer $5.9 Million Bahamas Property in Plea Deal

Dutch Authorities Arrest Suspect in ZKasino Online Gambling Scam

Costly Mistake: Victim Loses $68 Million In Address Poisoning Scam

BitMEX Founder Arthur Hayes Sees Bitcoin’s Price Slump as Market Cleansing

Massive Bitcoin Volatility, Ripple (XRP) Trial, and CZ’s Sentencing: This Week’s Crypto Recap

Old XRP Coins Cause Stir Indicating Potential ‘Buy the Dip’ Interest

Crypto Price Analysis May-03: ETH, XRP, ADA, SHIB, and DOT