TronWeekly

Crypto World News

You are here: Home / Archives for BitMEX

BitMEX

BitMEX’s USDTUSDC Perpetual Swap, Offering Traders 10x Leverage On USD Coin

by

BitMEX, the cryptocurrency derivatives exchange, has launched its latest product – the USDTUSDC perpetual swap. Traders will now be able to use Bitcoin (XBT) to pay margins and speculate on the price of USD Coin (USDC) via BitMEX’s new offering.

Starting from 04:00 UTC on March 12th, BitMEX will offer traders the opportunity to take long or short positions on USDC through their USDTUSDC perpetual swap. This latest addition to BitMEX’s offerings will allow traders to speculate on the stability of the USDC peg.

A significant advantage of trading USDC listings on BitMEX is the ability to leverage up to 10x and hold some of the industry’s highest maximum position sizes.

Additionally, its USDTUSDC product features a fixed Bitcoin multiplier, allowing traders to take positions on the USDT/USDC exchange rate without having to touch USDT or USDC.

Due to the quanto risk premium, its USDTUSDC perpetual swap may trade at a premium or discount to the USDT/USDC spot price. Traders can deposit Bitcoin (XBT) as a margin and realize gains or losses in XBT as the USDT/USDC rate fluctuates.

The contract specifications for the USDTUSDC perpetual swap include a Bitcoin multiplier of 0.0001 XBT (10,000 Satoshis), with the XBT contract value being the USDTUSDC price multiplied by the Bitcoin multiplier.

The underlying for the USDTUSDC perpetual swap is BUSDTUSDC, with a max leverage of 10x and a risk limit of 50 XBT.

The maker fee for the USDTUSDC perpetual swap is -0.01%, while the taker fee is 0.075%. The base initial margin is 10.00%, while the base maintenance margin is 5.00%.

However, the launch of BitMEX’s USDTUSDC perpetual swap provides traders with a unique opportunity to speculate on the price of USD Coin with Bitcoin and enjoy high leverage and position sizes.

BitMEX Founder Proposes New Stablecoin Mechanism – NUSD

As TronWeekly reported recently, BitMEX’s founder, Arthur Hayes, suggested a novel approach to address the difficulties of using Bitcoin as a financial asset and exchanging it with fiat currencies like USD. 

According to Hayes, the process is complicated since exchanges require a bank account for the USD component of a transaction.

To tackle this issue, Hayes proposed the use of a new stablecoin called NUSD. The stablecoin’s value would be equivalent to $1 worth of Bitcoin plus a short 1 Bitcoin/USD inverse perpetual swap. To create 1 NUSD, traders would need to deposit 1 BTC on a derivatives exchange and short 1 XBTUSD swap.

Related Reading | Tether Takes On WSJ: Calling Out Misleading Reporting & Bias

Bitcoin-Backed NUSD: A New Stablecoin Proposal By BitMEX Founder

by

Arthur Hayes, the founder of BitMEX, has proposed a new stablecoin mechanism in his Medium blog post. Hayes stated that using Bitcoin as a financial asset and easily swapping between it and a fiat currency like USD is not easy, as exchanges require a bank account for the USD leg of a transaction. 

Hence, he proposed a new stablecoin called NUSD, which would be worth $1 of Bitcoin + short 1 Bitcoin/USD inverse perpetual swap. To create 1 NUSD, traders need to deposit 1 BTC on a derivatives exchange and short 1 XBTUSD swap.

Hayes argued in a Medium blog post that traditional exchanges require users to have a bank account to trade between Bitcoin and fiat currency. It is a significant hurdle for crypto companies that aim to create a parallel financial system that does not rely on banks. 

Stablecoins like Tether (USDT) have emerged as an alternative to traditional exchanges, allowing traders to move between fiat and cryptocurrency without the need for a bank account.

NUSD: A New Stablecoin Proposal Leveraging Bitcoin’s Potential

The proposed NUSD stablecoin aims to bridge the gap between centralized and decentralized finance, allowing users to swap between Bitcoin and fiat currency without the need for a bank account. 

Hayes believes that stablecoins are not meant to serve as a decentralized store of value but rather to provide a fiat tokenization service that banks refuse to offer.

Hayes argues that overcollateralized stablecoins like MakerDAO/DAI and algorithmic stablecoins like TerraUSD are fundamentally unnecessary. Instead, stablecoins like NUSD are intended to solve a real pain point in the crypto capital markets, allowing traders to quickly move between fiat and crypto.

The problem with current stablecoins, according to Hayes, is not centralization but rather the lack of reputable, established banking institutions launching their own stablecoins. 

If commercial banks like JP Morgan were to launch their own stablecoins, they could put existing stablecoins like USDT, USDC, and BUSD out of business immediately.

While the proposed NUSD stablecoin is still in the conceptual stage, Hayes’ idea has garnered significant attention from the crypto community. 

If successfully implemented, NUSD could provide a more efficient way for traders to swap between Bitcoin and fiat currency without relying on traditional exchanges or banks.

Related Reading | Binance Leads the Way with PoR Upgrade & Range-Bound Launch

Binance Joins Other Crypto Firms In Aid For Turkish Earthquake Victims: Report

by

A catastrophic 7.8 magnitude earthquake hit Turkey and Syria early on Monday, leaving behind a trail of destruction and debris. However, among others, the crypto sector has stepped up to offer them support, including Binance, the world’s leading crypto exchange.

The quake, one of the strongest to hit the region in a century, claimed over 4,300 lives and injured thousands more. As the affected communities and governments struggled to cope with the aftermath, the cryptocurrency community also offered support.

Multiple exchanges, including leading crypto exchange, Bitfinex, Bybit, and BitMEX, have pledged to offer aid packages to help those affected by the earthquake. Gate.io has stated that it has started preparing aid packages and will deliver them in coordination with the authorities.

Binance, Bitfinex & Others Supporting Victims

Binance CEO Changpeng Zhao took to Twitter to express his sadness and support for the victims, saying that the Binance team is working on a solution to help. 

In a tweet from Binance Turkey, the company expressed sympathy for the families of the deceased and hoped for a quick recovery for those who were injured.

According to Binance Turkey’s tweet translation:

May God have mercy on our citizens who lost their lives in the earthquake that took place in Kahramanmaraş and the surrounding provinces; Our condolences to their families and our nation, and we wish a speedy recovery to the injured.

Bitfinex has committed to developing an aid package for earthquake victims, and Bybit has announced that aid is being sent to the impacted area. 

Meanwhile, BitMEX has pledged to give the proceeds from its current trading competition to the Red Crescent and urged others who are able to make a donation to do so.

Turkey led the MENA region as the largest cryptocurrency market and recorded the highest year-over-year growth in crypto transactions among all regions in 2022. 

It was ranked 12th globally in terms of crypto adoption, with a 10.5% YoY growth in crypto transaction volume, according to Chainanalysis’s 2022 Global Crypto Adoption Index.

Related Reading | Ethereum-Focused Scaling Firm Teams Up With Chainlink

BitMEX Sued by its Former CEO for Breach of Contract

by

According to a court document, Alexander Hoeptner, the former CEO of BitMEX, is suing the cryptocurrency derivatives marketplace for $3.4 million for breach of contract and wrongful termination.

In January 2021, Hoeptner started working for the Seychelles-registered exchange as top executives at HDR Global Trading Limited, BitMEX’s owner and operator, were being sued for allegedly facilitating illegal trading.

Hoeptner left BitMEX in October 2022

Hoeptner’s departure from the company was previously mentioned but without further information. Hoeptner now asserts that he received a letter of termination citing, among other things, the misappropriation of funds and failure to perform duties.

“Such termination is wholly wrongful and without basis,” the court filing said.

Hoeptner claims that BitMEX owes him a total of $3.4 million, which includes $2.4 million for his second-year bonus and smaller sums for the rest of his wages, relocation costs, and housing, as evidenced by the court document.

“At the direction of the founders and the board, I put my personal and family lives on hold in order to be on the ground managing operations in Singapore and Hong Kong.” “I’m disappointed that it has gotten to the point that legal proceedings are necessary, but I’ve been left with no choice.”

Hoeptner told CoinDesk

According to documents, Hoeptner moved around a lot while serving as CEO of BitMEX, dividing his time between Singapore, Germany, and Hong Kong.

However, sometime between July and August 2022, the company informed him that there was a chance he might not get his second-year bonus or any compensation for his relocation, citing “extensive cost-cutting and restructuring program which involved numerous layoffs.”

According to the filing, his relocation costs stood at $230,000 at the time. He received a letter of termination a few weeks later.

The cryptocurrency exchange recently reduced its workforce by 30% in an effort to return to its original focus on trading derivatives.

Arthur Hayes, the former CEO of BitMEX, pleaded guilty to charges of purposely failing to establish an anti-money laundering (AML) program at the exchange and was given a two-year probationary period earlier this year.

Cardano’s ADA, DOT & XTZ Goes Live In BitMEX

by

Cardano [ADA], Polakdot [DOT], and Tezos [XTZ] are now listed in leading crypto derivatives and spot exchange BitMEX.

Besides ADA, users will also be able to deposit and withdraw Shiba Inu [SHIB], Chainlink [LINK], Tron [TRX], Solana [SOL], Polygon [MATIC], and many other cryptocurrencies, via BitMEX wallet.

image 22
Cardano's ADA, DOT & XTZ Goes Live In BitMEX 2

The cryptocurrency trading platform founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed has its headquarters in Seychelles.

BitMEX battled tough times when co-founder Hayes was arrested for money laundering charges and the firm was forced to pay a civil monetary penalty of $100 million to the CFTC.

Alexander Höptner, who took over as CEO of BitMEX from Hayes less than two years ago, made the decision to step down.

Stephan Lutz replaced him as the Interim CEO of the derivatives exchange. Lutz will also remain as the company’s CFO.

Last month, the trading platform launched its first Initial Exchange Offering (IEO) with its BMEX token, kicking off a new era in BitMEX.

With the latest additions of tokens, the platform is looking to entice more users and create new opportunities for traders.

That said, according to research by CryptoCompare, the number of daily active users on the smart contract platform Cardano ($ADA) increased by 15.6% in November following the failure of the well-known cryptocurrency exchange FTX.

Cardano’s DeFi Gains Major Traction

Per CryptoCompare, the blowout led to an increase in the platform’s average daily active user base. The total number of Cardano’s daily active users increased by over 15% last month to 75,800, the highest figure since May.

Similar to this, Cardano network monthly transactions increased 5.34% to 2.32 million last month, which was the highest monthly transaction volume since April. According to data from the cryptocurrency’s network, the number of wallets there surged by over 100,000 last month.

The report from CryptoCompare also mentions that DeFi on the Cardano blockchain celebrated its one anniversary on November 28. Late in 2021, MuesliSwap made its network debut, and soon after, it had locked in a total value of $1 million.

Cardano supporters, the report adds, are anticipating that the introduction of several new advancements, such as sidechains, Cardano’s Ethereum Virtual Machine, and its privacy-focused sidechain Midnight, would increase the usefulness of the network’s DeFi ecosystem.


Dogecoin And Shiba Inu Struggle As Crypto Market Suffers Significant Losses

by

The crypto market cap has taken a significant hit today. Most coins are in the red and experiencing losses on the daily and weekly price charts. Shiba Inu (SHIB) and Dogecoin (DOGE), the two most well-known meme coins, are also among those struggling with significant dips below support.

Today’s global crypto market cap was below $1 trillion, which caused the total value of all digital currencies to decline by over 2% over the course of the day to $918 billion, while the total volume of the crypto market increased by about 35.84% over the previous 24 hours, according to data from CoinMarketCap.

However, Global markets have continued to sink as central bankers are raising interest rates in order to keep soaring inflation under control. Other events, like payrolls, and speeches from monetary authorities, have also affected global risk assets. Therefore, risky assets such as cryptocurrencies have recently begun declining even faster.

Cryptocurrencies have endured a tough time this year, losing $2 trillion in value since it was at its peak back in 2021. Since crypto winter swept through the industry, prices for most coins have fallen by 50%. 

Even the most prominent cryptocurrency in the world, Bitcoin – which had once reached an all-time high of around $69000 – plummeted to below the $20k mark, nearly 72% lower as per CoinGecko statistics.

Shiba Inu And Dogecoin Are Suffering In Red

According to CoinGecko’s data, Shiba Inu (SHIB), the thirteenth largest coin, had fallen 5.3% within the last 24 hours and was currently trading at $0.00001030. In addition, the token showed a 7.9% decline in losses within the previous seven days.

Meanwhile, data from CoinGecko reveals that DOGE, the 10th-largest cryptocurrency and well-known meme coin, is down 1.8% on the day and is trading at around $0.059811 at the moment. 

Moreover, the token’s 24-hour trading volume increased by 30% to $665.19 million, despite an almost 2% decline in its market cap to $8.17 billion, per Nomics’s data. 

Coin prices usually increase when external factors, like improved social sentiment and retail hype, come about. However, even when BitMEX announced the addition of SHIB to its platform on October 9, the price of Shiba Inu (SHIB) did not appear to increase at all. 

While on the other hand, the price of the meme coin increased last week when it was announced that Tesla’s billionaire owner Elon Musk had agreed to buy Twitter under the terms of the original agreement.

Related Reading | Avalanche: Total Revenue Drops by 94.1%

Shiba Inu Goes Live On This ‘Most Advanced’ Crypto Exchange

by

Shiba Inu [SHIB] along with six other crypto assets gets listed on BitMex, the leading futures and spot exchange for digital assets, according to the official announcement.

Apart from SHIB, Sandbox [SAND], Cronos [CRO], Decentraland [MANA], FTX [FTT], and Wrapped Bitcoin [WBTC] have been added for trading on the platform. Further, it announced adding future coins and trading pairs.

We will also be adding support for more coins and tokens  – such as OKB – in the coming weeks, so stay tuned. As part of our ongoing focus to enhance the versatility of our platform, we will be dropping more cryptocurrencies, a new type of crypto derivative, and spot trading pairs – including ETH/BTC – on BitMEX.

image 13
Shiba Inu Goes Live On This 'Most Advanced' Crypto Exchange 4

By the end of the year, according to BitMEX CEO Alexander Hoeptner, the cryptocurrency exchange intends to float its native coin, known as BMEX, on the spot market.

Millions of tokens were airdropped by BitMEX to thousands and thousands of customers over the previous few months for trade. The airdrop was available to both new and existing verified clients who subscribed to BitMEX EARN, the platform’s passive income generator.

In introducing exchange tokens, BitMEX joins a lengthy list of competitor exchanges, including FTX, Binance, Coinflex, and others.

BitMEX stated that its recently launched spot market is still reporting solid operational data. Seven cryptocurrency pairs, including Bitcoin [XBT], Ethereum [ETH], Chainlink [LINK], Uniswap [UNI], Polygon [MATIC], Axie Infinity [AXS], and ApeCoin [APE], are supported by BitMEX Spot Exchange at launch.

Meanwhile, Shiba Eternity, the eagerly awaited P2E game by Shiba Inu, launched smoothly around the globe as predicted, garnering numerous downloads and favorable reviews within a few days after its release.

Shiba Inu P2E Game Is In Top Form

With over 4.7 ratings across both the Android and iOS app stores, Shiba Eternity is now rated among the top card games.

Shiba Eternity is widely regarded as the best card collection game (CCG), but some players still find it challenging to play.

Shiba Eternity Players’ Instruction Manual

To make gameplay simpler for everyone, the Shiba Inu team, led by Shytoshi Kusama, plans to publish a game guide for Shiba Eternity.

The next players’ handbook for Shiba Eternity is already finished, claims the fictitious Shiba Inu head developer. The project team is now making the required modifications, nevertheless, to make sure it is error-free.


BitMex exec pleads guilty in violation of Anti-Money Laundering Act

by

Along with three other BitMEX co-founders who have previously acknowledged breaking U.S. law, a senior employee of the cryptocurrency futures exchange has pleaded guilty in New York to failing to implement an anti-money-laundering program.

The United States Attorney for the Southern District of New York stated on Monday that a high-ranking employee at the offshore cryptocurrency derivatives exchange, Gregory Dwyer, entered a plea of guilty to breaking a federal anti-money laundering rule.

Dwyer admitted to breaking the Bank Secrecy Act by “failing to build, implement, and manage an anti-money laundering program” at BitMEX, where he formerly oversaw business development.

In a press release, U.S. Attorney Damian Williams stated,

“Today’s plea reflects that employees with management authority at cryptocurrency exchanges, no less than the founders of such exchanges, cannot willfully disregard their obligations under the Bank Secrecy Act.”

Lack of KYC aided BitMEX in criminal activity

The three co-founders of the company, Arthur Hayes, Benjamin Delo, and Samuel Reed, had previously been convicted guilty by judgments obtained by the U.S. Attorney. According to prosecutors, BitMEX’s absence of know-your-customer (KYC) procedures allowed the business to flourish as a hub for illegal conduct, including as money laundering and sanction evasion.

HYRBDMSNSBC7VI5CS47PBKHENI
Arthur Hayes, former CEO of BitMEX

Two years ago, BitMex was hit with civil and criminal accusations by the CFTC, DOJ, and FinCEN after the company allowed Americans to trade cryptocurrency futures on its platform without having a U.S. registration or using poor know-your-customer (KYC) procedures. Although the agencies ultimately reached a $100 million settlement with the exchange last summer, the accusations led to a shift in the exchange’s management.

The Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN) filed civil lawsuits against the four men as well as BitMEX and other business entities, which resulted in financial penalties. Hayes, Reed, and Delo each had to pay $10 million after BitMEX was compelled to pay the regulators $100 million.

BitMEX Co-founder Gets 30 Month Probation, Tackles Prison Time

by

Benjamin Delo, the co-founder of cryptocurrency exchange BitMEX, was sentenced to 30 months of probation for breaching the Bank Secrecy Act (BSA), an anti-money laundering statute.

Following his guilty plea in February to charges of “willfully neglecting to establish, administer, and maintain an Anti-Money Laundering (AML) program” in his capacity at BitMEX, the sentence was handed down on June 15th in a federal court in New York.

Prosecutors suggested that Delo should serve a year in prison or at the very least be sentenced to two years of probation and six months of home detention, as former CEO Arthur Hayes was in May.

BitMEX’s Benjamin escapes jail time

Delo’s reduced term brings an end to a legal drama that began in October 2020, when co-founders Hayes and Samuel Reed, as well as BitMEX’s first formal employee Gregory (Greg) Dwyer, were all prosecuted with similar crimes.

Delo’s offenses were described by Judge John Koeltl as “extremely significant,” and he admitted that he knew BitMEX was infringing US rules by failing to build an anti-money laundering (AML) and know-your-customer (KYC) system.

However, Judge Koeltl acknowledged that the exchange later took steps to correct the problem and became compliant.

Judge Koeltl, a British citizen who lives in Hong Kong, ordered that Delo be permitted to spend his probationary sentence there.

The fact that Delo paid a $10 million fine to settle a court judgment from May in a civil lawsuit brought by the Commodity Futures Trading Commission (CFTC) for violating parts of the Commodity Exchange Act was also taken into account by Judge Koeltl.

After the sentencing hearing, a spokesperson for Delo’s legal team claimed the court rejected “the government’s opportunistic attempt to misrepresent the gravity of the Bank Secrecy Act charge in this instance.”

According to the Sydney Morning Herald, former BitMEX head of business development Greg Dwyer, who now dwells in Bermua, is in discussion with the New York federal court to prolong a deadline for filing pre-trial documentation.

BitMEX Co-founder Arthur Hayes Dodges the Prison Bullet

by

Arthur Hayes, co-founder of Bitmex, will not go to prison for breaking the US Bank Secrecy Act. Instead, the former CEO of Bitmex cryptocurrency exchange was sentenced to “six months of house arrest and two years of probation.” Hayes has also agreed to pay a $10 million penalty.

The creator and former CEO of bitcoin derivatives exchange Bitmex has been punished for breaching the Bank Secrecy Act, according to the US Department of Justice (BSA). In February, Hayes admitted to breaking the Bank Secrecy Act.

“Hayes, 36, of Miami, Florida, was sentenced to six months of home detention and two years of probation. Hayes also agreed to pay a fine of $10 million dollars representing his pecuniary gain from the offense.”

Department Of Justice

BitMEX CEO Arthur Hayes admits to his doings

Hayes “willfully disobeyed US law that compels businesses to do their share to assist prevent crime and corruption” while establishing a cryptocurrency trading platform “that profited him millions of dollars,” according to US Attorney Damian Williams.

“He purposefully failed to implement and maintain even basic anti-money laundering rules, allowing Bitmex to operate as a platform in the shadows of the financial markets,” Williams continued.

Benjamin Dalo and Sam Reed, two other Bitmex co-founders, also pled guilty and are expected to be sentenced soon.

The two other co-founders, like Hayes, have been sentenced to pay a civil monetary penalty of $10 million apiece.

Lawyers for the 37-year-old American entrepreneur filed a motion for probation with no home detention or community confinement after reaching a plea agreement that would result in a jail term of six to twelve months under federal guidelines.

The authorities claimed that BitMEX had become a “money-laundering platform” due to their incapacity to provide know-your-customer (KYC) and anti-money laundering (AML) services.

Following the lawsuit, the co-founders resigned from the company, and BitMEX agreed to pay a $100 million settlement to the US Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FCEN) (FinCEN).

For failing to adopt an anti-money laundering strategy at the exchange, Arthur Hayes, former CTO Samuel Reed, and co-founder Benjamin Delo were fined $10 million.