Crypto futures trading platform BitMEX had its worst ever month for outflows in July, with investors pulling more than $500 million from the platform, as they sought to find another exchange to trade on.
The news was revealed in data published by TokenAnalyst, which found that in July the platform experienced withdrawals of $524 million, which was higher than earlier data from Fork Monitor that suggested around $400 million had been taken out of the platform.
Crypto traders and influencers said BitMEX had never experienced such a high volume of withdrawals in a single month.
Writing on Twitter crypto analyst Cetris Paribus said:
“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”
The amount means that roughly 50,000 bitcoin left the platform in July as customers sought other exchanges to trade on.
It’s possible that customers are moving to other platforms such as Binance to conduct their trades. The BitMEX rival recently launched margin trading, allowing customers to speculate on the price of various digital assets.
COO Angelina Kwan – has she quit?
On top of the record outflows, speculation is rife that Angelina Kwan, the former Hong Kong Securities and Futures Commission (SFC) veteran, employed by BitMEX as chief operating officer in November 2018, has now left the company.
Kwan has eight years of experience at the SFC as its director of enforcement and market supervision, and was brought in at BitMEX to help it collaborate and work with regulators and compliance agencies globally.
Despite her LinkedIn profile showing her career history back to 1994, there is no mention of her role at BitMEX, with speculation that she removed it after she quit the company.
One reason for her possible departure is the reported ongoing investigation into BitMEX by United States regulator the Commodity Futures Trading Commission (CFTC).
The CFTC works to protect market users and their investments, as well as consumers from fraud and manipulation.
Earlier this year Bloomberg reported that unnamed sources had told them that a ‘months-long’ CFTC investigation was underway into BitMEX, based on allegations it had let US traders use its platform, despite it not being registered in the United States.