Crypto derivatives exchange BitMEX has now officially had its worst month on record, as more and more people pull their bitcoin out of the troubled company, as they seek a different platform for trading.

Data published by TokenAnalyst, revealed that in July 2019 the exchange, which is headed up by influential crypto VIP Arthur Hayes, had outflows of $524 million, an outflow amount that crypto analyst Cetris Paribus said “had never” happened before.

He 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 bad news was corroborated by Fork Monitor, which found that in July BitMEX had processed withdrawals of around 50,000 BTC

No sign of Arthur

Adding to speculation that the company is in the doldrums, is the fact that CEO Hayes has been absent from Twitter for weeks, leading many to conclude that he’s running scared from US authorities over allegations that Bitmex allowed US residents to use the platform.

In a recent article from Bloomberg, it was reported that the United States’ Commodity Futures Trading Commission (CFTC) was investigating Seychelles-based BitMEX, alleging that the company had broken US law by failing to stop US-based traders from using the service.

The Bloomberg report said:

“The U.S. Commodity Futures Trading Commission is investigating crypto exchange BitMEX, according to people familiar with the matter.

“The months-long CFTC probe is focused on whether BitMEX broke rules by allowing Americans to trade on the platform, which isn’t registered with the agency, said one of the people who asked not to be named discussing the investigation, which hasn’t been made public … The probe is ongoing and the regulator’s investigations often don’t lead to allegations of misconduct. The CFTC declined to comment.”

A spokeswoman from BitMEX refused to confirm or deny the investigation, telling the media outlet:

“HDR Global Trading Limited, owner of BitMEX, as a matter of company policy, does not comment on any media reports about inquiries or investigations by government agencies or regulators and we have no comment on this report.”

Increased competition

In recent months, BitMEX has also faced increased competition as global cryptocurrency exchange Binance launched its own margin trading platform, allowing its customers to speculate on the price movement of digital assets.