Possible Effects of the BitMEX Incident on Bitcoin

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Cryptocurrency analyst Willy Woo said despite the market price falling recently; He expresses his trust in Bitcoin.

According to Woo, the latest events on the market were unnecessarily exaggerated because BitMEX was not hacked, only its founders were accused by the CFTC of violating the US Bank Privacy Act. The analyst also adds that “no traders will lose cryptocurrencies,” adding that “futures exchanges will clear their practices.”

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On Thursday, the Commodity Futures Trading Commission (CFTC) charged BitMEX and all affiliates. The organization claimed that BitMEX was operating illegally in addition to supporting money laundering by not following the necessary procedures.

Such as Bank Privacy Act, identity verification and reporting suspicious activity during transactions; It requires the strict implementation of anti-money laundering regulations. The CFTC and New York Federal prosecutors have laid solid grounds that BitMEX is completely ignoring these laws. It is also reported that the CFTC has been chasing the stock market for years.

Records show that the platform has earned a billion dollars in fees since its inception 6 years ago. Although Americans are prohibited from trading on the platform, most of them were collected from US users. Therefore, the authorities ordered warnings to be issued to American citizens trying to sign up for BitMEX.

In addition, the US President and his wife were recently diagnosed with COVID-19. These two events led to an almost instantaneous decline in the markets. Within a few hours after the public was notified of these events, the value of Bitcoin fell by over 5%. Trends show that altcoins are also following this downward trend.

See Also
BitMEX CTO Samuel Reed Released on $ 5 Million Bail

Why Bitcoin Will Recover?

As evidenced by key trends increasing in Bitcoin users, analyst Willy Woo said; He claims that Bitcoin will survive this situation. Also, the volatility has decreased; He also emphasizes that there are clear signs of less fraud, more organic actions, and corporate money. Woo strongly believes that Bitcoin will recover soon.

The analyst’s statement is backed by Galaxy Digital CEO and former partner of Goldman Sachs, Mike Novogratz. It does not seem that the recent BitMEX crisis should have caused a domino effect.

Novogratz believes that the Bitcoin world is much bigger and not constrained by a single person or exchange. Novogratz encourages all current and leading Bitcoin investors to buy from the bottom.


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