BitMEX Says It's 'Business as Usual' Despite 30% Drop in Bitcoin Balance After CFTC, DOJ Action

More than 57,000 BTC have been withdrawn from BitMEX since Sept. 30.

AccessTimeIconOct 7, 2020 at 3:48 p.m. UTC
Updated Mar 6, 2023 at 3:18 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

One week after charges were brought by the U.S. Commodity Futures Trading Commission and Department of Justice, nearly 30% of BitMEX’s bitcoin (BTC) balance has been withdrawn by customers.

  • A spokesperson for the derivatives exchange told CoinDesk that, despite the significant withdrawals, “It is business as usual for the BitMEX platform.”
  • Total BTC held on BitMEX addresses dropped from 192,986 BTC on Sept. 30 to 135,619 BTC Tuesday, a 29.73% decline, according to data provided by Coin Metrics.
  • Aggregate open interest for BitMEX BTC futures also took a hit in the past week, falling by over $100 million from $732 million on Sept. 30.
  • The “fundamentals” of the exchange “remain strong,” however, according the spokesperson, specifically BitMEX's “resilient open interest and liquidity.”
  • On-chain transaction data reviewed by CoinDesk suggests that much of the withdrawn coins were deposited to addresses at Binance, which also prohibits American users, and U.S.-based Gemini and Kraken.
  • Even though customers are withdrawing coins, one BitMEX balance that is not shrinking is the exchange's Insurance Fund, a pool of funds nominally used to prevent auto-deleveraging of traders’ positions.
  • Since Thursday, the fund has grown by nearly 20 BTC (or over $200,000) to 36,588 BTC (or over $388 million), by far the largest insurance fund of any cryptocurrency derivatives exchange.
  • The Seychelles-based business consistently ranks fourth by 24-hour volume and second by open interest, according to bitcoin futures data from Skew.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.