Famous cryptocurrency research firm Chainalysis warned its customers about BitMEX. The firm placed its famous leveraged trading platform in the high risk zone.
Contacting its customers including government agencies, banks and exchanges on October 5, Chainalysis reported that it will accept BitMEX as a “high-risk exchange” from October 13th.
Those who use the company’s transaction monitoring mechanism called KYT will now receive BitMEX alerts for both future and past transfers in the system.
It was also noteworthy that this move of Chainalysis came after the US Department of Justice and Commodity Maturity Transactions Commission’s operation against BitMEX and its executives on October 1st. CEO Arthur Hayes and other executives are accused of anti-money laundering and failure to comply with KYC (Know Your Customer) law.
The following statements were included in the e-mail that Chainalysis shared with its customers:
“All transfers made on or after October 1 will be considered in the high risk group. The compliance team will alert our users by looking at both old and future transfers. Since there are thousands of old transactions, it is beneficial to make this process part by section in order to avoid confusion. ”
Speaking to The Block, an official from Chainalysis stated that it is their own decision whether customers take risks or not, but the company’s duty is to protect them from all kinds of risks.
David Mercer, CEO of LMAX Group, a London-based cryptocurrency exchange, said Chainalysis believes this move will have a knock-on effect:
“I cannot see an important institution that wants to continue trading there.”
On the other hand, it seems that there are exits from the stock market following the accusations by the US government. Data from Arcane Research showed that the number of open positions in the BitMEX Bitcoin derivatives market fell 16% through October 2.