More than 45,000 Bitcoin have been removed from BitMex since the US government raised charges against the exchange and its executives. October 1 dealt two devastating blows to BitMex. First, the CFTC and DOJ have brought charges against the exchange.
Shortly after, its founders (including CEO Arthur Hayes) were indicted by the US government. The market reacted to the news with a sharp drop in several of Blockchain’s biggest assets.
This is not the first time in recent months that BitMex has contributed to a downturn. The exchange began to lose the confidence of its participants following a black Thursday power outage that prevented users from trading or recovering their assets. While users have withdrawn over 100,000 Bitcoin in the six months between this episode and these recent charges, the exodus of the past two days appears to be of unprecedented magnitude.
According to data from Crystal Blockchain, in less than 48 hours, the exchange’s net exits exceeded 45,000 Bitcoin. Meanwhile, Gemini and Binance appear to be the biggest beneficiaries of these releases, followed by OKEx and Huobi. Over 20,000 BTC has been transferred out of BitMex and in the last four exchanges.
It’s unclear whether BitMex will disappear into the abyss of time like many failed exchanges before it, or whether the company will survive to trade another day. Lance Morginn, CEO of Blockchain Intelligence Group and former Homeland Security Department Oversight Special Agent, told Cointelegraph the most likely outcome would be monetary penalties and a pledge from BitMex executives not to indulge. to illegal activities in the future.