BitMEX is currently investigating unusual trading activity involving Bitcoin on its platform, raising concerns about potential unfair practices. The investigation was prompted by a sudden and sharp decline in Bitcoin’s value against the USDT stablecoin on Monday, dropping to $8,900 on BitMEX while maintaining a significantly higher value above $66,000 on other exchanges. However, Bitcoin’s price quickly returned to normal levels and aligned with broader market trends thereafter.
During the investigation, BitMEX identified instances of abnormal “aggressive selling behavior from a few accounts,” which deviated from typical market expectations. Despite this, BitMEX assured users that its operations remained intact, with no disruptions reported and user assets remaining secure.
It’s worth noting that BitMEX does not employ its own market makers. The exchange explained that the large and rapid sell orders observed were too overwhelming for both market makers and traders on the platform to effectively manage. Importantly, the sudden drop in Bitcoin’s price did not impact BitMEX’s derivatives trading and did not result in forced sell-offs. Additionally, BitMEX emphasized that its deposit and withdrawal processes remained unaffected, with transactions being processed within the usual timeframe.
The investigation was initially brought to light by a user on X with the handle @syq, who highlighted the unexpected market movement, linking it to a 977 Bitcoin sale valued at approximately $66 million. While some users speculated that BitMEX had suspended withdrawals, the exchange clarified that this action was limited to accounts under investigation.
In a related development, Bitcoin’s value experienced a decline of up to 7.3% on Tuesday, dropping to $62,458. This drop followed a significant outflow from the Grayscale Bitcoin Trust (GBTC), marking its largest since transitioning to an ETF on January 11, amounting to $643 million.