The entire cryptocurrency market is tumbling downwards due to this major news heading out, that one of the biggest futures derivatives exchange Bitmex has been seized by the United States - Commodity Futures Trading Commission (CFTC).
According to news from Coin telegraph which is a major news source in cryptocurrency space.
CFTC has charged the Bitmex derivatives exchange for operating an unregistered trading platform and violating anti-money laundering regulations in the United States.
A civil enforcement action in the Southern District of New York has been filled against people who allegedly own and operate the exchange.
According to news from Coin Telegraph --
People who are charged includes the Name Arthur Hayes, known as the CEO of BitMEX, Ben Delo and Samuel Reed. The CFTC alleges that these individuals are owner and operators of BitMEX.
The 'CFTC' believes that BitMEX has offered illegal leverage trading services to retail traders to the tune of 1trillion$ in notion in 2014.
CoinTelegraph mentioned that despite the success -- "The Exchange failed to take the most common compliance procedure" which includes
Lack of KYC -- know your customer along and Anti-Money Laundering procedures.
A Statement by the Department of Justice reveals that --
Samuel Reed- bitMEX CTO, was arrested on Thursday morning is Massachusetts. Hayes, Delo and Dwyer "remain at large".
According to FBI Assistant Director William Sweeney
One defendant went as far as to brag the company incorporated in a jurisdiction outside the U.S because bribing regulators in that jurisdiction cost just a coconut.
Such big news are not common even in the crypto market even when there is scams and hacks everywhere. Names like Arthur Hayes are very big in the Cryptocurrency market and people do follow them. And this is the reason due to which the whole crypto market went blood red in couple of minutes just after the news was out major currencies Like ETHEREUM, BITCOIN has lost significant value in just minutes after the new.
Here is a chart from BITMEX when the new was out in the market.
Image source bitMEX.com
As you can see in the above 1 hour chart of bitcoin, what impact such news have on the market.
What Should you do now ?
If you are trapped in the bear market, then let me assure you it won't last long enough. According to me you should wait for some time for the market to touch the bottom and the you can go for your longs.
Hope you guys got the information you were looking for.. ????????
Follow me on social media-- handle -- @cryptobyksquare -- on twitter, instagram and youtube
