BTC Outflow on BitMEX Exceeded Inflow by $73M: TokenAnalyst

Published at: July 21, 2019

Bitcoin (BTC) outflows on major crypto exchange BitMEX have notably exceeded the inflows after the firm was reported to be a subject in a regulatory investigation.

Bitcoin outflows on BitMEX exceeded inflows by $73 million

Over the past 24 hours, BitMEX saw an outflow of $83 million worth of Bitcoin, while only $12 million came in, London-based blockchain data provider TokenAnalyst reported in a tweet on July 19.

24-hour on-chain Bitcoin flows on major exchanges. Courtesy of: TokenAnalyst Twitter

While such a discrepancy appears to be abnormal in comparison with other exchanges, such as Binance, which saw a $54 million outflow alongside an inflow of $58 million, BitMEX exchange has experienced outflow dominance several times before, according to TokenAnalyst.

Historic inflow and outflow on BitMEX. Courtesy of: TokenAnalyst

Bitcoin outflow dominance on BitMEX is normal due to the amount of Bitcoin held on the platform

The spike of Bitcoin outflows came amid recent reports the United States Commodity Futures Trading Commission launched an investigation of the company. The authority is allegedly probing BitMEX as the United States is one of the countries excluded from using the exchange, which is registered in the Seychelles.

While some commentators online considered the recent spike of outflows on BitMEX a sign of panicked leaving, industry Twitter personality WhalePanda said that it is a normal reaction, taking into account the amount of Bitcoin held by BitMEX. He wrote: “It's more of a reminder for people who don't actively trade their entire stash to withdraw (some of) it.”

BitMEX is the world’s second largest crypto exchange according to reported daily trading volume to date, with its Bitcoin trading amount accounting for $3.2 billion at press time, according to data from Coin360.

Tags
United States
Bitcoin Regulation
Cftc
Bitmex
Related Posts
BitMEX operator joins digital finance standards and advocacy organization
100x Group, BitMEX’s parent company and the holding structure for its platform, has joined Global Digital Finance, or GDF, a major industry association advocating for the adoption of digital assets. As a GDF patron board member, 100x will advocate for a more inclusive and better regulated digital financial system, BitMEX announced on Jan. 21. The new partnership with GDF extends 100x’s efforts to promote collaboration between the public and private sectors to drive mainstream adoption of crypto. “Greater public-private collaboration is the only way to realise the wide-scale adoption of digital assets and we will be championing an advance in …
Bitcoin / Jan. 21, 2021
BitMEX operator hires chief compliance officer amid US criminal charges
The operator of crypto derivatives exchange BitMEX, 100x Group, has hired a seasoned Anti-Money Laundering (AML) specialist, Malcolm Wright, as its chief compliance officer. In an announcement on Oct. 12, the 100x emphasized Wright's profile as the current chairman of the Advisory Council and AML Working Group at Global Digital Finance, and as a speaker covering key topics that include the Financial Action Task Force's Recommendations for Virtual Asset Service Providers. 100X Group had last week reshuffled its top leadership, removing BitMEX's co-founders Arthur Hayes, Samuel Reed and Ben Delo from executive roles. Hayes, Reed and Delo were all charged …
Regulation / Oct. 12, 2020
Breaking: US Regulator Investigating Crypto Exchange BitMEX — Report
United States regulator the Commodity Futures Trading Commission (CFTC) is reportedly investigating derivatives giant BitMEX. CFTC wants to know if Americans using BitMEX According to Bloomberg sources citing people familiar with the matter speaking on July 19, the CFTC suspects that BitMEX allowed U.S. residents to use its platform to trade. Under current law, the U.S. is one of the countries excluded from using BitMEX, which is registered in the Seychelles, and similar crypto-based financial services, but users may have sought to circumvent the geoblock using services such as VPNs. The investigation, details of which have not yet been confirmed …
United States / July 19, 2019
New Rules: US Regulators Extend Their Purview Within Crypto Industry
This week, on the same day, two United States regulating bodies — the Financial Industry Regulatory Authority (FINRA) and its ruling organization the Securities and Exchange Commission (SEC) — reported filing objections against non-compliant crypto players who made some false statements regarding their businesses. While the SEC barely needs any introduction for those who follow the crypto industry, FINRA might seem unfamiliar. FINRA is a private, non-federal agency, although it is overseen by the SEC. It regulates one specific part of the securities industry in the U.S.: brokerage firms doing business with the public. What makes the news particularly interesting …
United States / Sept. 15, 2018
FinCEN Director: Agency Receives 1,500 Suspicious Activity Reports on Crypto per Month
Kenneth A. Blanco, director of the U.S. Financial Crimes Enforcement Network (FinCEN), has revealed that the agency has seen a surge in filings of crypto-related Suspicious Activity Reports (SARs). The number of complaints now exceeds 1,500 per month, according to him. Blanco’s remarks were made as part of a speech he delivered at the 2018 Chicago-Kent Block Legal Tech Conference August 9. The director outlined FinCEN’s ongoing role in regulation and law enforcement for the emerging crypto space, which it coordinates in tandem with the Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC). He noted …
United States / Aug. 11, 2018