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The largest drop happened on Friday (Oct 2nd), where 44,000 $BTC were withdrawn from the exchange – the largest negative net flow observed to date.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- Since then over 40,000 Bitcoins were withdrawn from the Seychelles-based crypto exchange.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.