US Regulator Launches Investigation into Client Trades

The month of July has not been a particularly good one for cryptocurrencies, and if recent reports regarding BitMEX are to be believed, then the upcoming weekend might not be a great one either.

Report Details

In a sensational report from Bloomberg, it has been revealed that popular crypto exchange BitMEX is apparently being investigated by the Commodity Futures Trading Commission for allegedly allowing US residents to trade on the platform. Although US residents can trade in cryptocurrencies, the situation with BitMEX is a bit different. US residents are categorically excluded from using the platform since it is registered in Seychelles.

It is the same with any other crypto platform registered in that country. It has now emerged that some user might have used tools like VPN to get around those regulations and traded anyway. In such a situation, it is the responsibility of the platform in question to bar such users from the platform. It should be noted that no official confirmation has yet been made about the investigation by either BitMEX or the CFTC. The development came to light on social media through Bloomberg reporter Tim Culpan, who seems to have been briefed about the events.

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Once the news broke on social media, selling pressure was experienced in many cryptocurrencies, including Bitcoin. The news brought immense pressure on Bitcoin, and soon enough, the token gave up as much as $500, bringing it close to $10,000. The recent report has also brought into focus the relentless attacks that both BitMEX and its Chief Executive Officer Arthur Hayes received from noted economist Nouriel Roubini over the course of the month so far. After a debate between the two in Taipei, the economist has been relentless in his attack, and on Wednesday he had even published an essay in which he stated that he has evidence that criminal activities are going on in the BitMEX platform.

What do you think of the whole debacle?

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