Following the U.S. Commodities and Futures Trading Commission's (CFTC) recent fraud charges against BitMEX and its operators, the U.S. Department of Justice filed charges of their own against BitMEX and it's four founders for violating the Bank Secrecy Act. A total of 37,000 BTC, worth over $387 million, was transferred out of BitMEX in less than 24 hours, with about 30% landing in Binance or Gemini. This exodus represents a 16% decrease in assets. The CFTC complaint states that BitMEX facilitated cryptocurrency derivatives transactions worth trillions of dollars, which yielded more than $1 billion in fees, but they failed to implement even the most basic compliance, Know Your Customer (KYC), or Anti-Money Laundering (AML) procedures that are required of all financial institutions that impact U.S. markets. Three BitMEX founders, including CEO Arthur Hayes, have or will be arrested and will likely plead their innocence. The allegations against BitMEX are serious and make a compelling case for decentralization of major exchanges. Over $1.5 billion of BTC is still held on BitMEX.

Crypto News (Oct 6, 2020)