The negative impact of the arrest of the founders of the BITMEX derivatives exchanges is opening a wave of withdrawals on the platform and accordingly of blockchain analytics firms more than $335 millions worth in Bitcoin have been withdrawn from BitMEX right after the U.S government filled charges and conducted some arrests .
BitMEX still holding more than 150,000 Bitcoins but with the incident caused by the American Government, who accuse the owners of operating an illegal business, customers are taking out their assets from the derivatives exchange and investing in other places such as Gemini and other biggest platforms to continue their business.
To remember that BitMEX founders got arrested, even the CEO Arthur Hayes are "seeing the sun" from jail , because the U.S government by the hand of CFTC (Commodity and Future Trading Commission) and DoJ (department of justice) filled charges against the cryptocurrency firm who is being accused of operating an illegal business also breaking some rules.
The firm made clear that will fight back the accusations and defend themselves against them, but with the apparent "inoperative" business it's normal that users start to take out their assets, the future of the platform still opened with no much to say about it for now. The business hold a lot of contracts in the derivatives market with opened positions by clients (the majority of them still trust the exchange, justified by not taking any assets out from it) but also many people are not satisfied with the situation.
At least one thing comes good for the market, with the recent 32,000 Bitcoins cashed out from Arthur Hayes exchange, the market gained some more liquidity in Bitcoin assets and knowing that many of this investors are betting on Holding this (for derivatives trading) the market won't see the price go down with this injection.
It's a shame that some government still threatening cryptocurrency business owners and taking unprecedent arrests and charge well known figures on the market just in order to state the word "we are the law here and we can do everything we want" as I believe if they have reasons to take those actions in a lightning speed means that any other business operating in U.S is in danger to be closed and that isn't good for cryptos.
Stay tuned for more exciting news, download BRAVE Browser to earn BAT tokens for watching non intrusive ads, subscribe for more updates on crypto field.
Take care.
Find also the article on my blog.
