Over 100 million yuan of funds flowed out! BitMEX is under investigation, and users are anxious

The focus of the U.S. regulator's investigation is whether BitMEX violated regulations by allowing Americans to trade cryptocurrencies on the platform.
As soon as the regulators showed their sword, funds all fled. BitMEX may really be in big trouble this time.
Since the news of the investigation by US regulators was released last Friday (July 19), the net outflow of Bitcoin transactions on BitMEX, the world's largest cryptocurrency exchange, has been pouring out like a flood.
Data from TokenAnalyst shows that BitMEX Bitcoin trading funds are clearly "outstripping income". On the 19th, $82 million flowed out and $18.35 million flowed in; on the 20th, $21.18 million flowed out and $9.52 million flowed in; on the 21st, $12.81 million flowed out and $4.99 million flowed in.

Joe McCann, a cryptocurrency researcher, found that BitMEX trading volume once "avalanche" and 24-hour trading momentum dropped by 33%.

The apparent outflow of funds from BitMEX is caused by the fact that it is under investigation by the U.S. Commodity Futures Trading Commission (CFTC). An unnamed respondent told Bloomberg that the CFTC’s investigation into BitMEX has been conducted secretly for a month.

BitMEX, a cryptocurrency exchange registered in Seychelles, has been accused of possibly violating regulations by allowing Americans to trade cryptocurrencies on the platform. According to its official data, BitMEX's trading volume in the past 30 days reached $208.98 billion.
Previously, BitMEX co-founder and CEO Arthur Hayes said in an interview in January that BitMEX has refused to allow US residents to use the platform, but users can still use VPN to bypass the United States and use the platform through IPs from other countries or regions allowed by BitMEX.
This statement has also been confirmed by industry insiders. Regarding the investigation of BitMEX, Gabor Gurbacs, director of digital assets at VanEck, tweeted that BitMEX has proper KYC and IP isolation, as well as very clear pop-up windows and contractual requirements to block American access (even better than most banks!), but it is the users themselves who use VPNs and false information to access, which violates the contract and the law.

Regarding the large outflow of funds caused by the US CFTC's investigation into BitMEX, cryptocurrency analyst Whale Panda said that this is a normal reaction considering the amount of Bitcoin held by BitMEX. This is more like a reminder for those who are not actively trading their entire inventory to withdraw.
BitMEX is one of the most popular exchanges in the cryptocurrency market. The biggest reason is that traders can use a variety of "leveraged trading" products on the platform, allowing them to conduct high-risk, high-profit transactions with a small amount of capital, including the Bitcoin futures contract product XBTUSD with a maximum leverage ratio of 100 times, as well as other futures and swap contracts.
BitMEX announced in June this year that its daily trading volume exceeded US$16 billion, setting a record high; given its scale and high-risk and high-reward trading products, it is often nicknamed "big casino" by the community and traders.
It is worth mentioning that one day before the US regulator publicly investigated BitMEX, "Dr. Doom" Nouriel Roubini had already begun to criticize BitMEX. Roubini said that BitMEX and all similar crypto trading platforms allow systematic illegal activities, including turning a blind eye to money laundering by terrorists and criminals from Russia, Iran and elsewhere, and profiting from these transactions.

At the end of June this year, Roubini bluntly criticized that BitMEX's trading volume was unreliable.
How can people trust these numbers when 95% of Bitcoin volume is fake? Fake money, junk money, fake volume, fake prices. The only real things in the crypto space are manipulation, pump and dump, front running, wash trading, etc.

In early July, Dr. Doom and BitMEX CEO Hayes exchanged words in Taipei, saying that the payment revolution has already taken place in the field of financial technology, and those crappy cryptocurrencies (stinking shi*coins) cannot be compared with China's Alipay, WeChat and other payment applications. (Xiaocong Blockchain)