Since the announcement of the CFTC’s charges against BitMEX, over 45,000 BTC worth and over $500million has been pulled from the exchange.
According to statistics retrieved from Glassnode, the BTC balance on BitMEX dropped to 120,000 BTC – a decrease of 27%.
The largest drop happened on Friday (Oct 2nd), where 44,000 $BTC were withdrawn from the exchange – the largest negative net flow observed to date.
Around 30% of those funds were transferred to Gemini and Binance in equal amounts.
Bitcoin’s open interest in perpetual futures contracts on BitMEX saw a significant decline as well.
It decreased by almost 24%, from $590M to currently $450M; levels not seen since May 2020.
Recall Nairametrics two days ago, revealed how U.S. regulators brought a series of incriminating charges against BitMEX, a Seychelles-based crypto exchange;
- Since then over 40,000 Bitcoins were withdrawn from the Seychelles-based crypto exchange.
- Failure to adhere to proper KYC rules is among the charges against BitMEX by the U.S. Commodity Futures Trading Commission (CFTC).
- Once the leading crypto derivatives exchange; BitMEX’s market share has dwindled in recent times, with many other virtual service providers offering a variety of crypto derivatives trading instruments.
- Data shows much of it went to its crypto exchange rivals, which include Gemini, Binance, and Kraken.
BitMEX’s bitcoin sudden outflow to these crypto exchanges, reveals that global investors and traders are placing a high value on better compliance with regulations or better-leveraged bitcoin trading products.
Gemini, the U.S.-based and Winklevoss brothers-owned exchange, is known for strict ‘know-your-customer (KYC)’ procedures.