BitMEX Public Trust Recovery Amid CFTC Investigation: $60 M Positive Cash Inflows In August

It appears that traders are beginning to regain their faith in the most popular Bitcoin margin trading exchange, BitMEX, following the CFTC probe. So far in August, the exchange saw more than $60M worth of positive inflows. 

BitMEX Showing Signs Of Recovery

The popular Bitcoin margin trading exchange, BitMEX, shows strong signs of recovery following the CFTC investigation which began back in July. 

So far in August, the cryptocurrency exchange has seen upwards of $60 million of positive inflows, recording the first month in the green since March, according to data from popular data resource TokenAnalyst. During August, the exchange went through only one day where the outflows were larger than the inflows. On August 6th, BitMEX received roughly around $2M less than it lost. 

However, BitMEX has clearly had a rough time over the past four months, as all of them were fairly negative for the exchange, especially in July, when the exchange saw outflows worth roughly around $524 million. To put things in perspective, BitMEX has never had a month during which it lost more than $100M prior to this. What is more, in 2018 the exchange was 100% positive, bringing in more than $1.3B of inflows. 

Bitmex had $524M net outflows in July. It had never had more than $100M in a single month.

2018 brought in $1.3B, and there was not a single month where outflows were greater than inflows. pic.twitter.com/yfQSMfCbvy

— Ceteris Paribus (@ceterispar1bus) August 4, 2019

The Toll Of CFTC’s Investigation

It’s clear that the investigation that the CFTC launched against BitMEX took its toll. As we mentioned above, the exchange lost upwards of $524M in July alone as a result of the probe. 

The CFTC alleged that BitMEX has allowed US-based traders to operate on its platform, despite the fact that this is against existing regulations, as well as the exchange’s own terms of services. 

We have yet to see how this is going to end, but it’s not the first time BitMEX is addressing issues of the kind. Back in November 2018, the exchange which is based in Hong Kong began shutting down accounts which originated in the US. 

It’s also worth noting that this investigation followed shortly after BitMEX’s CEO, Arthur Hayes, had a very heated and heavily broadcasted debate with popular nocoiner Nouriel ‘Dr. Doom’ Roubini. 

In any case, it appears that things are picking up for BitMEX, which is a signal for the renewed confidence in the exchange. 

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