BitMEX Records $524 Million in Fund Outflows in July

CFTC reportedly opened an investigation against the exchange for offering services in the US.

Crypto derivatives platform BitMEX has recorded an outflow of $524 million from its trading platform in July, making it the worst month for the exchange.

According to the data compiled by TokenAnalyst, the outflow of funds on the derivatives exchange remained on the upper side than inflows. However, last month, this figure skyrocketed from below $100 million in the previous month.

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On the contrary, last year, despite the dominance of the bear on the crypto trading market, the exchange brought in $1.3 billion in funds and the inflow of funds was always greater than the outflow from the exchange.

Doom of a mammoth?

Seychelles-registered BitMEX is one of the largest crypto derivatives platforms, onboarding traders mostly from Asian markets. It offers leverage up to 100x for its futures contracts. According to its website, the platform handled $5.32 billion worth futures contracts trades in the last 24 hours, while the figure for the last 30 days is $136.63 billion.

The exchange, however, is not allowed to offer its services in the United States as it requires a license from the Commodities and Futures Commission (CFTC) to operate in the country.

Last month, Bloomberg revealed that the US futures market watchdog is investigating on the exchange under the suspicion of the availability of its services to the US-based clients.

This might be one of the key factors behind the massive increase of the outgoing funds from the exchange.

However, the nature of the investigation is not yet known as neither CFTC nor BitMEX revealed anything officially.

Earlier this year, Arther Hayes, the co-founder and CEO of BitMEX, revealed that the exchange is considering to expand its services by launching a cryptocurrency options platform.

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