Hundreds of millions of funds fled, tens of thousands of BTCs were raised, and the king of leverage "human evaporation"

24 hours, $73 million BTC fled; 13 days, 22,000 bitcoins were raptured.

After the news that "BitMEX is being investigated by the US Commodity Futures Trading Commission", the BitMEX platform has undergone dramatic changes.

At the same time, Arthur Hayes, the founder of BitMEX, who has been keen on Twitter, has been aphasia for 18 consecutive days. The official Twitter of BitMEX has not been updated for 15 consecutive days.

The king of leverage is "missing"?

The king of leverage "evaporation"

BitMEX CEO Arthur Hayes seems to be "evaporating".

Beginning on July 12th, the "king of leverage" that sends tweets every day has no sound on social media.

What is even more strange is that not only Arthur Hayes has no voice, but even the official Twitter of BitMEX stays on July 15th. The last tweet is about Arthur Hayes and Doomday Dr. Nouriel Roubini debated in Taipei, China on July 3.

The “disappearance” of many days has made BitMEX users and even the entire cryptocurrency community full of doubts. Where did Arthur Hayes go?

On July 19th, Bloomberg published an article titled "The US Regulatory Agency's Investigation of the Cryptographic Exchange BitMEX Customer Transaction," which revealed the fact that BitMEX is being investigated by the US Commodity Futures Trading Commission (CFTC). And the investigation has been going on for months.

The report said that the focus of the CFTC survey was whether BitMEX violated regulations and allowed Americans to trade on BitMEX because BitMEX did not register with the agency.

In response, a BitMEX spokesperson responded that according to the policy of BitMEX's main company HDR Global Trading Limited, we do not comment on any reports of government agencies or regulatory agencies, and we do not comment on the report.

In fact, at the Asian blockchain summit held in Taipei, China on July 3, Arthur Hayes was also attacked by Dr. Nouriel Roubini because of the legality of BitMEX.

Doom Dr. Nouriel Roubini pointed out that Arthur Hayes was a liar. BitMEX allowed non-qualified investors to play 100 times leverage, without identity certification, and without anti-money laundering regulations.

“In the United States, 20% of students use loans to speculate on cryptocurrencies. This makes it impossible for casinos to come regardless of the player’s money. They only care if they can make money.”

Arthur Hayes said that BitMEX is an exchange with a Seychelles compliance license. "How about 100 times leverage? Customers have found us, they are willing to speculate, we are a platform of integrity."

Perhaps Arthur Hayes’ “disappearance” is not unrelated to the regulation of the CFTC.

Regarding the "disappearance" of Arthur Hayes, Deep Chain Finance interviewed BitMEX investor, founding partner of Triumph Capital, Wu Xin, Wu Xin said: "We update every quarter, usually do not interfere with each other, he is very big."

24 hours, $73 million BTC fleeing

After the news that BitMEX was investigated by the CFTC came out, the market that swept the wind quickly responded.

On July 20th, TokenAnalyst, the data analysis agency of the chain, found that the BTC inflows and outflows of the major exchanges in the past 24 hours showed that the BTC withdrawal amount of the BitMEX platform was the highest.

In the case of Binance, Bitstamp, Bittrex, Poloniex and other trading platforms BTC inflows and outflows are generally flat, BitMEX BTC's inflow amount is only more than 12 million US dollars, but the outflow amount is as high as 85 million US dollars, which means worth 73 million The dollar's BTC fled.

Analysts say that this situation of BitMEX is largely due to the panic effect of Bloomberg's report, and this bad situation may continue.

The data from the foreign data analysis platform skew reflects that it seems that before the Bloomberg report, users and organizations in the market heard the wind and took action. Because from July 13th, the BTC in the BitMEX cold wallet began to decrease. By July 26th, the original 195,000 BTC had become 17.3. The reason behind the data change may be that BitMEX received a large amount during this period. Withdrawal request.

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However, some people think that these withdrawals from BitMEX are normal, because there are usually large transfers of funds on BitMEX and other cryptocurrency platforms.

The status of the king of leverage is shaken?

In January 2014, Arthur Hayes, a banker, founded BitMEX with two partners.

BitMEX is designed as a pure futures contract platform to match buyers and sellers of futures contracts. If it is bitcoin, the platform charges a settlement fee of 0.05%, other low-liquidity currencies such as Litecoin, and the platform charges 0.25%. Settlement fee.

Like a casino, BitMEX is always able to keep it dry regardless of market conditions.

In addition, BitMEX shines with genius in product design – launching the 100x leveraged XBT-USD perpetual contract. Unlike a general fixed-term contract, a general fixed-term contract will eventually expire and trigger the delivery of the underlying asset, and the perpetual contract will never end. It will track the dollar price index with Bitcoin, and investors can continue without interruption. Do more time or short bitcoin.

This made BitMEX stand out from the Bitcoin futures contract trading platform, and also made Arthur Hayes the "king of leverage" of hundreds of millions of cryptocurrencies.

Earlier, British media reported that Ben Dyro, one of the co-founders of BitMEX, became the first bitcoin billionaire in the UK and the youngest self-made billionaire in the UK.

The Hong Kong Economic Times also reported that in August 2018, BitMEX spent huge sums of money to rent the 45th floor of the Yangtze River Center, spending $28.66 per square foot (0.09 square meters), breaking the previous record of $26.75 and becoming the world. The most expensive office.

On July 30, official website data showed that BitMEX's 24-hour volume exceeded $2.4 billion. In the past 30 days, the volume exceeded $1569 billion, and the volume in the past year exceeded $1 trillion.

BitMEX can be said to be a veritable bitcoin futures contract trading platform that dominates the world.

However, in the face of the regulatory layer, huge, such as BitMEX, also have to bow.

For BitMEX being investigated, VanEck Digital Assets Director Gabor Gurbacs said in a push that BitMEX has proper KYC and IP isolation, and there are very clear pop-ups and contractual requirements to block access by Americans (even better than most banks). It is the user's own use of over-the-wall software and false information to access the contract and the law.

In the view of Yu Bolun, the encryption community TradingView, BitMEX's greatest competitiveness and the most deadly problem is that bitcoin deposits and withdrawals are not subject to any regulation.

"BitMEX should be the only mainstream exchange that does not force KYC." Yu Bolun said.

Regarding the impact of the investigation of BitMEX, Yu Bolun said to Shenzhen Chain Finance that this incident has no effect on small retail investors. Previously, it may have been a US market maker. At present, BitMEX trading volume has recovered a lot. Bring influence, but the impact is limited.

In Yu Bolun's view, the more important effect is that "the dominance of BitMEX may have begun to waver."

Investigate BitMEX and clear the way for Bakkt?

On the second day of the news of BitMEX being investigated, on July 20th, the NYSE held a launching ceremony for the Bakkt test, which was widely interpreted as: the regulator has given a green light to Bakkt.

Bakkt is the ICE's parent company Intercontinental Exchange (ICE) to create a crypto asset trading platform, focusing on the introduction of physical settlement of bitcoin futures contracts. As early as 2019, Bakkt announced that it had raised $182.5 million from 12 investors including Microsoft and Naspers.

It can be said that Bakkt is a typical regular Wall Street, left-handed supervision resources, right-handed traditional capital, born with a gold spoon.

The front foot BitMEX was investigated and the launching ceremony of the back foot Bakkt test was held. This also led some people to associate: Is the US regulatory layer paving the way for Bakkt by suppressing BitMEX?

“Before it was not just BitMEX, the currency was also under pressure to provide normal services for US users. There were countless altcoins under the B and P networks, which could not be traded normally in the US. However, at the same time, regulatory compliance and specialized services for the institutions Bakkt is testing and ready to go online. There are a lot of things that can't be guessed without evidence, but it is absolutely certain that no one in this world or a country has money and hatred.” Yu Bolun said.

In Yu Bolun's view, there is no coincidence in the world, especially this kind of interest-related matters. The tightening of supervision is actually that Wall Street wants to compete for the pricing power of Bitcoin and use it to suppress competitors.

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