As we previously reported, to the central popular crypto currency exchange BitMEX; A lawsuit was filed yesterday by the US Commodity Futures Trading Commission (CFTC) for violating many rules such as the exchange’s money laundering obligations.
In a separate investigation, criminal proceedings were brought against Arthur Hayes, Ben Delo, and Samuel Reed. Although the defendants continue to say that they are not guilty; Panic has prevailed in the crypto currency market since yesterday.
According to data provider Glassnode, about 170,000 BTC [about $ 1.8 billion] were held in BitMEX wallets, and more than 32,200 BTC were withdrawn from exchange addresses within one hour. This amount was equal to about 19% of all Bitcoins in the exchange’s vaults.
It has been noted that this is the biggest BTC exit from the stock market ever. However, some users have suggested that the exchange bought Bitcoin and did not sell to secure their funds, as the dollar is easier to seize than the digital asset.
Purges Continue on BitMEX
Meanwhile, nearly $ 19 million long positions at BitMEX have been liquidated since yesterday, and the liquidation was still ongoing at the time of writing.
As BTC left the BitMEX exchange, the derivative exchange lost over $ 100 million in Open Interest [OI]; The effect of this was felt in the futures market, and with this effect, the value of BTC has now declined to $ 10,474.31.
Declining interest and liquidations pushed BitMEX to fourth place in terms of BTC futures volumes on the platform.
The impact of the news was not limited to the Bitcoin market alone. Altcoins also continued to collapse due to the sudden drop in BTC price and the panic in the market. Ethereum, the second largest cryptocurrency, was also down about 9% so far and was trading at $ 340.22. ETH long positions worth 642 thousand dollars were liquidated on BitMEX. The exchange ranked fourth in 24-hour ETH Futures volume with $ 334.8 million.