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These are surely bad times for a leading crypto exchange caught in the crossfire of U.S financial regulators.

Data retrieved from Glassnode, a crypto analytic firm, revealed Bitcoin outflows from BitMEX addresses continue – our data shows that in the past hour another 7.200 BTC were withdrawn.

The total amount pulled from the exchange over the past day is now nearly 40,000 $BTC.

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Why it’s happening now: U.S. regulators a few days ago brought a series incriminating charges against BitMEX a Seychelles-based crypto exchange. Since then over 40,000 Bitcoins were withdrawn from the Seychelles-based crypto exchange.

Failure to adhere to proper KYC rules is among the charges against BitMEX by the U.S. Commodity Futures Trading Commission (CFTC).


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Once the leading crypto derivatives exchange, BitMEX’s market share has dwindled in recent times with many other virtual service providers offering a variety of crypto derivatives trading instruments.

Data shows much of it went to its crypto exchange rivals that include Gemini, Binance, and Kraken.

BitMEX’s bitcoin sudden outflow to these crypto exchanges reveals that global investors and traders are placing a high importance on better compliance with regulations or better-leveraged bitcoin trading products.

Gemini, the U.S.-based and Winklevoss brothers-owned exchange is known for strict “know-your-customer (KYC)” procedures.

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Recall CipherTrace research discovered that just this year alone, 56% of VASPs globally have weak or porous KYC processes, meaning money launderers can use these virtual asset service providers to withdraw or deposit their ill-gotten funds with very minimal to no KYC.

When looking at the weakest KYC countries in the world, CipherTrace analysts discovered that 60% of the top 10 worst KYC countries in the world are in Europe, 20% are in Latin American and Caribbean countries, and the final 20% is in APAC countries.