The balance of BitMEX’s bitcoin wallet dropped by about 100,000 pieces, and top traders are suspected to have “leaved” the platform

On October 1, the U.S. Commodity Futures Trading Commission (CFTC) charged BitMEX with money laundering and illegal operations in the United States. Then BitMEX CTO Samuel Reed was arrested on October 1. At the same time, the U.S. CFTC accused BitMEX founder Arthur Hayes, co-founders Benjamin Delo, Samuel Reed, and business development chief Gregory Dwyer of conspiring to violate the U.S. Bank Secrecy Act, and were therefore prosecuted for criminal prosecution.

In addition to Samuel Reed, the other three mentioned above have not yet been arrested. People familiar with the matter told reporters that they are not currently in the United States.

Many people worry that the US’s “sanctions” on BitMEX will affect the company and even the entire encryption market. So after the news broke, has BitMEX’s market share changed, and do users still trust BitMEX? This paper attempts to answer these two questions from some data.

OI continues to slump, top traders are suspected of "leaving"

BitMEX's OI continues to decline. So far, its OI has dropped enough for competitors to take its place. Previously, BitMEX's OI had not reached $1 billion in 6 months. As of October 14th, in terms of perpetual contract trading volume, BitMEX has slipped to the third place in the futures trading rankings, with Binance and Biybit ranking the top two.

On the other hand, the wallet balance of BitMEX has also been greatly affected. The wallet balance dropped from about 200,000 BTC to 100,000 BTC. The drop (in bitcoin balances) came despite BitMEX breaking its “traditional once-a-day withdrawal process and completing 6 batches of withdrawals within 2 days to reassure traders.”

To add insult to injury for BitMEX, one of the BitMEX platform’s top traders, “mercurly-wood-sprite,” may have left the platform. The trader last updated his position on Oct. 2, a day after the BitMEX CTO was arrested.

< p line="xHfz">BitMEX was investigated by the United States, Arthur Hayes resigned as CEO, and Samuel Reed resigned as CTO. Neither they nor their co-founder, Ben Delo, have any positions at 100x Group (the parent company of BitMEX). The founding team of BitMEX has left. In fact, before this, Arthur Hayes had already shown the state of "resignation". He hadn't paid attention to the company's business development on his personal account for a long time, and put more experience on personal mining. BitMEX may not have launched new products for a long time, while platforms such as FTX have closely followed market hotspots and launched DeFi index or contract transactions many times.

Anyway, the ripples from BitMEX's predicament are not only affecting Bitcoin, but the entire crypto derivatives market as well. Regardless of whether BitMEX survives the regulatory turmoil, this period of time has given competitors a chance to capture market share. On March 12 this year, due to the downtime of BitMEX, many users were unable to compensate or close their positions in time, which caused asset losses. turmoil. It is still unclear whether BitMEX, which has experienced two consecutive "heavy losses" this year, can still secure the top three positions in encrypted derivatives trading volume.   

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