- BitMEX has seen $475,000 worth of Bitcoin leave the exchange since it was hit with CFTC charges last week
- Usage of the platform has also nosedived as users abandon it
- 2020 has seen three huge Bitcoin outflows, leaving BitMEX in a precarious position
BitMEX, the cavalier Bitcoin futures exchange whose owners and operators were last week indicted by the Commodity Futures Trading Commission (CFTC) following a 15-month investigation, has seen usage of its platform crumble as users rush to get their Bitcoin off the exchange. More than 45,000 Bitcoin ($475,000) has flowed out of the exchange since news of the CFTC charges broke, while its open interest has crashed by $140 million.
Bitcoin Outflow Up and Platform Usage Down
BitMEX executives, including CEO Arthur Hayes, were indicted by the CFTC on a number of charges last week, including operating an unregistered trading platform and violating Anti-Money Laundering (AML) regulations. News of the indictments, which did not come as a surprise to many who have been in the space for a while, resulted in an exodus of Bitcoin and users from the platform.
Data from CryptoQuant shows a huge spike in 24-hour Bitcoin outflow from the exchange, with the total now sitting at almost 45,000:
Source: Cryptoquant
Data from Skew also shows that usage of the platform also massively reduced as a result of the investigation:
Source: Skew
Binance, Gemini, and Kraken have been the biggest beneficiaries of the BitMEX news, with their Bitcoin inflows rising hugely, while the above chart shows what Binance has now overtaken FTX as the most used Bitcoin futures exchange.
Not BitMEX’s First Rodeo
The CFTC investigations aren’t the only times BitMEX has seen surges in Bitcoin outflow. When news of the CFTC investigations broke in July last year, $73 million in BTC was taken off the exchange by users, while the Bitcoin price crash in March, which caused massive liquidations on the platform, saw the largest continuous outflow in the exchange’s history as the amount of Bitcoin held on the platform dived by 25%.
Whatever happens with the CFTC investigations, it’s clear that users are finally getting tired of BitMEX, and with so many other alternatives out there it is likely only a matter of time before the exchange dwindles into obscurity or closes its doors for good.
