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Outflow of 40,000 Bitcoins, 20% OI Devastated! How do Twitter Celebrities view the BitMEX lawsuit?

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Outflow of 40,000 Bitcoins, 20% OI Devastated! How do Twitter Celebrities view the BitMEX lawsuit?

After the U.S. Commodity Futures Trading Commission (CFTC) issued a statement of charges on October 2nd Taiwan time, BitMEX has seen an outflow of 40,000 bitcoins, equivalent to about 420 million U.S. dollars. A day later, many Twitter influencers also expressed their opinions on the matter on social media platforms.

BitMEX has seen an outflow of 40,000 Bitcoins

According to previous reports, the U.S. Commodity Futures Trading Commission (CFTC) issued a statement on October 2nd, accusing the Bitcoin derivatives exchange BitMEX of illegally operating an unregistered trading platform and violating anti-money laundering laws. Co-founder Samuel Reed has been arrested, while other individuals involved, CEO Arthur Hayes, co-founder Ben Delo, and Head of Business Development Greg Dwyer, face similar charges.

Earlier predictions suggested that if BitMEX were forced to shut down, it would lead to an impact on BitMEX customers, who might sell a significant amount of Bitcoins they hold, causing significant downward pressure on prices. However, current data indicates that BitMEX customers do not intend to wait for the judgment results or sell their Bitcoins.

According to the latest data from the data analysis company Glassnode, since the statement was announced on October 2nd, BitMEX customers have withdrawn 40,000 BTC from the exchange. At today's prices, this is equivalent to about $4.2 billion in assets.

Glassnode previously tweeted that within two days, there was a record hourly outflow of 23,200 BTC (approximately $2.43 billion) in on-chain transaction data from BitMEX, which the company stated was the highest hourly outflow of funds in the exchange's history.

Additionally, data from the derivatives data analysis platform Skew shows that since the incident, the open interest of BitMEX Bitcoin futures contracts has plummeted by 20%.

Twitter Influencers' Perspectives

Larry Cermak

Larry, the Research Director at blockchain media outlet The Block, stated:

"The impact of this case will be huge, as many large exchanges outside the U.S. still allow U.S. customers to trade without KYC and VPN. This phenomenon will change soon."

Meltem Demirors

In the indictment, there is a remarkable description that co-founder Arthur Hayes bribed local government officials in the island nation of Seychelles with a "coconut" to legally register and operate the exchange.

Source: CFTC

Meltem Demirors, Chief Strategy Officer at CoinShares, used coconut and palm tree emojis in a tweet, along with a screenshot saying:

"FBI Director Sweeney will soon let them know that the price for their crimes cannot be paid with tropical fruits."

Willy Woo

Bitcoin analyst Willy Woo stated that this event is favorable for Bitcoin's medium to long-term price:

"Ironically... the pullback from BitMEX news is far less than unique liquidation events on BitMEX. It hasn't even broken the uptrend support. BitMEX news is bullish for Bitcoin adoption and favorable for medium to long-term prices."

Joseph Young

Well-known cryptocurrency researcher and journalist Joseph Young shares a similar view to Willy Woo:

"Even with negative news like kucoin + bitmex + trump diagnosis, Bitcoin price couldn't be pushed below $10,500."