75,000 BTC Withdrawn From The BitMEX Exchange Following Charges From The CFTC

  • 75,000 BTC Withdrawn From The BitMEX Exchange Following Charges From The CFTC

    Unless you’ve been living under a rock for the past week, the CFTC in the United States brought the charges against the BitMEX crypto platform due to violating its securities laws including anti-money laundering protection. Since the charges were slapped against the exchange, 75,000 bitcoins have been withdrawn from the exchange and it’s no surprise that that number is continuously going up.

    On the 1st of October last week, the United States attorney's office for the southern district of New York looked into a criminal indictment against the executives of the crypto platform claiming that they failed to comply with the bank secrecy act in the United States by allowing residents in the country to trade funds on the platform. It specifically went on to add that the exchange also didn’t conduct any know your customer (KYC) to check which has potential to welcome in bad actors to the platform.

    Given that this is one of the biggest platforms in the industry, this it’s news headlines with great speed. The filing said:

    “BitMEX touts itself as the world’s largest cryptocurrency derivatives platform in the world with billions of dollars’ worth of trading each day. Much of this trading volume and its profitability derives from its extensive access to United States markets and customers. Nevertheless, BitMEX has never been registered with the CFTC in any capacity and has not complied with the laws and regulations that are essential to the integrity and vitality of the U.S. markets.”

    The 75,000 bitcoins that have been withdrawn from the exchange would sum up to just over $800 million.

    When this hit headline news, many people within the crypto community were shocked that the CTO could potentially get arrested. Many have highlighted that this is just the start that represents the crackdown of cryptocurrency operations in the United States by regulators.

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