BitMEX All-Time Record: Over $10 Billion in Trading Volume Registered

Bitcoin Mercantile Exchange (BitMEX), a Seychelles-registered and Hong Kong-operated cryptocurrency derivatives exchange, recently recorded over $10 billion in total trading volume in just 24 hours.

This, according to Arthur Hayes, the CEO at BitMEX, who revealed via Twitter that high levels of volatility may have led to a dramatic surge in trading volume.

Nearly $86 Billion In Trading Volume In Past 30 Days

According to Twitter user AskMeHowToGetRekt (@IAmRipoff), the trading volumes on other cryptoasset exchanges (during the same time period) were “much lower.”

As confirmed by Sludgefeed, BitMEX has recorded approximately $86 billion in trading volume in the past 30 days. The recent spike on Saturday (May 11th) in the crypto trading platform’s volumes may have been due to a (potentially) large number of short position liquidations.

On Friday (May 10th), the Grayscale Bitcoin Trust (GBTC), which is available for over-the-counter trading on OTCQX, experienced a significant increase in volume. More than $50 million in total GBTC trades were processed (on Friday), which made it the most frequently traded OTC stock.

Bitcoin In “Bull Market Territory”

Over $29 billion in Bitcoin (BTC) trading volume was recorded on May 12th, surpassing the previous high set on January 8th, 2018 - when $25.5 billion in total BTC trades were processed.

Commenting on the recent price movements, prominent trader Alex Krüger argued that Bitcoin, the world’s most dominant cryptocurrency is now in “bull market territory.” Krüger, whose comments came after the bitcoin price surged past the $7,000 mark to reach a high of over $7,500, pointed out some key resistance levels to watch and other developments to keep an eye on:

Notably, 57% of Twitter users responding to Krüger’s survey, completed on May 9th, believe that Bitcoin will trade at $10,000 (or higher) this year.

"People Don't Steal Things That Don't Have Value"

The recent surge in bitcoin price has led to many analysts making extremely bullish price predictions. Mark Yusko, the CEO at Morgan Creek Capital Management, believes the BTC price will reach $400,000.

Yusko, who made his bullish prediction during an interview with news anchor Layah Heilpern on BloxLive TV, said that the large-scale security breach, which led to the loss of over 7,000 BTC on Binance, “confirmed” Bitcoin’s “value thesis.” According to Yusko, the theft of over $41 million in cryptocurrency tells us that bitcoin is perceived as something which is quite valuable as people "don't steal things that don't have value."

Bitrue Hacked: $4.5 Million in XRP and ADA Stolen, User Funds Will Be Replaced

At around 17:00 UTC on June 26 or 01:00 on June 27 in Singapore, where digital asset exchange Bitrue is based, a security breach occurred, which resulted in a loss of $4.5 million in crypto from the exchange's hot wallets.

Bitrue, which was founded in 2018, has quickly become a favorite with members of the XRP community because of the high degree of enthusiasm, support, and transparency shown by its management towards XRP. One interesting fact about Bitrue is that it supported XRP as a base currency on the day that its trading platform was launched (19 July 2018). 

At press time (07:57 UTC on June 27), visitors to the Bitrue website are greeted with this message:

Bitrue Hack Announcement.png

Around 02:16 UTC on June 27, Bitrue issued an official statement (via a series of tweets) that explained what exactly had happened, how this impacted its users, and what it was going to do next:

  • At approximately 17:00 UTC on June 26, a hacker or group of hackers "exploited a vulnerability" in the exchange's "Risk Control team's 2nd review process" to "access the personal funds of about 90 Bitrue users."
  • The hackers "used what they learned from this breach" to steal around $4.5 million in crypto—more specifically 9.3 million XRP and 2.5 million Cardano (ADA)—from the exchange's hot wallets and moved these coins to various other exchanges.
  • Shortly after the security breach, this attack was detected and trading, withdrawals, and deposits were all suspended on Bitrue, and the three exchanges where the stolen funds were moved to—Huobi Global, Bittrex, and ChangeNOW—were alerted and asked to freeze "the affected funds and accounts." Bitrue has also "contacted the relevant authorities in Singapore to assist us in tracking down the culprit and retrieving the stolen funds."
  • Because initially it was not quite clear what exactly had happened, the message shown above (about "system maintenance") was posted on the Bitrue website... Bitrue wishes to apologize for "this miscommunication" with its users.
  • Bitrue wants to reassure its users that all "heir personal funds are insured, and anybody affected by this breach will have their funds replaced by us as soon as possible."
  • Bitrue is currently "conducting an emergency inspection of the exchange and hope to be live again as soon as possible with log in & trading functionality." As for withdrawals, they will be "offline for a slightly longer period" while the investigation continues.
  • The flow of stolen XRP can be tracked via the XRP Ledger tool at Bithomp: https://bithomp.com/explorer/rwSvajJ4ZNhjgzcfaJWkEuLh4VURTFHuka

In communication with CryptoGlobe, Bitrue's support team confirmed that:

  • all user funds are "insured up to a maximum value of 1 million USD per user"; and
  • "trading should be back up within a few hours, and at that time users who were affected will already have their lost funds back in their accounts"

A few hours ago, Bitrue CEO Curis Wang posted this message on Twitter:

UPDATE (08:15 on June 27): Bitrue has just released a statement to media outlets to provide further details about this incident:

  • Of the $4.5 million in stolen crypto, 50% was "moved to private wallets," and the other 50% was moved to five crypto exchanges: Huobi, Bittrex, ChangeNOW, Exmo.me, and Coinswitch.co. The first three have frozen the stolen funds that were moved there (worth around $1.35 million). 
  • "This frozen amount should be recoverable by Bitrue in the future after working with the authorities and exchanges."
  • "After recovering the frozen assets, the net loss will be $3.15 million USD." This total "includes $1.89 million USD lost from individual user accounts, and $1.26 million USD lost from Bitrue’s own hot wallet."
  • "The funds lost by user accounts were insured and will be replaced by Bitrue as soon as the exchange resumes service."
  • "Bitrue plans to re-enable log in and trading services by midnight (Singapore time) June 27, i.e. by 16:00 UTC on June 27.
  • "Withdrawals from the exchange will not be possible until the Bitrue team is confident that any security vulnerabilities have been addressed."
  • "Bitrue will continue the planned launch of the trading of their platform token, Bitrue Coin (BTR), on Sunday 30 June 2019."
  • "Bitrue will analyze their automated systems and manual processes to identify any potential vulnerabilities and patch them before they can be exploited."

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