CFTC Probe of BitMEX a Result of Roubini Vs. Hayes Taipei Tangle?

Seychelles-based cryptocurrency exchange BitMEX is reportedly in trouble.

Soon after Nouriel Roubini, a New York University professor of economics and anti-cryptocurrency pundit, criticized BitMEX of violating regulations, it was reported on July 19 that United States Commodity Futures Trading Commission is opening an investigation into BitMEX on whether it broke the law by allowing U.S. residents to trade on its platform.

A day later, an additional finding by London-based blockchain data provider TokenAnalyst revealed that BitMEX has experienced major Bitcoin outflows to the tune of $73 million after news of the regulatory investigation surfaced.

It may be possible to take a look at BitMEX's stance on regulations from The Tangle in Taipei, the debate between an American economist Nouriel Roubini and BitMEX CEO Arthur Hayes on July 3.

"I don't want to force anyone to use BitMEX. We just have a website and don't do any marketing. Somehow a few thousand people have found a little oasis and started trading. Roubini thinks New York DFS and New York AG is the only game in town."

On July 16, around two weeks after the debate, he wrote an essay entitled "The Great Crypto Heist" and insisted once more that BitMEX was violating securities laws and regulations.

It may be worth noting that BitMEX is not the only major crypto exchange that is being pressured by U.S. regulatory authorities.

Since Bloomberg reported that the CFTC is probing BitMEX, the platform seems to have experienced an exodus of funds.

As reported on July 20, BitMEX saw an outflow of $83 million worth of Bitcoin, while only $12 million came into the platform during the same period of 24 hours.

If the CFTC concludes that BitMEX has been violating the law by allowing American traders to use its platform, it could provide a significant shock to the industry.