Galaxy Digital boss Mike Novogratz reminds the crypto community that Bitcoin is bigger than the crypto exchange BitMEX that is currently in the headlines.
He therefore advises investors to buy the dip.
The price of Bitcoin has held up well in the face of allegations made by the CFTC and the DOJ against BitMEX and Arthur Hayes.
Krypto never sleeps, but within the industry there has now been something of a wake-up call after charges were brought against the popular Bitcoin exchange BitMEX, which allows up to 100 times leverage and technically locks out US traders.
The Commodity Futures Trading Commission and the Department of Justice are both after the exchange and its owners – including the face of the company, Arthur Hayes. Accusation: They are said not to have enforced KYC and AML protocols.
Two other members of the management team, Ben Delo and Samuel Reed, are also in trouble.
Crypto market leaders reacted quickly to the case – including Bitcoin cop Mike Novogratz. The head of Galaxy Digital reminds his crypto friends that in America, one is innocent until proven guilty.
He adds that although he has no insight into the case, he wishes Arthur Hayes all the best.
He also addresses the elephant in the room: The Bitcoin price and the future of the crypto market. After all, the sinking of Mt Gox in 2013 had a damaging and long-lasting effect on the price of BTC.
So it is understandable that investors fear the same thing when BitMEX, which boasts a daily trading volume of more than $1 billion, is closed.
Novogratz offers some perspective in a tweet and explains: Bitcoin is, in his opinion, bigger than what is going on at BitMEX – he therefore advises investors to „buy dips“ with regard to Bitcoin.
So far investors are not listening to his advice, as the BTC price has fallen by more than 1%. But Bitcoin is still above $10,600, and the bottom seems not to have been broken in response to the BitMEX fees.
Maybe it has something to do with the fact that BitMEX is still processing withdrawals in order not to cause panic. Their strategy seems to be doing the trick – for now.
BitMEX-Bashing is in vogue
Not everyone is likely to be so forgiving – including the economist and coin-bashing Nouriel Roubini. Based on what he said a year ago, after a debate with the BitMEX boss, Roubini might be pleased that Hayes‘ relaxed attitude to the law has finally caught up with him.
BitMEX vehemently denies the accusations and writes in a statement
„Since our beginnings as a start-up, we have always tried to comply with the applicable U.S. laws, as they were understood at the time and based on the available guidance“.
The next weeks and months will show how the case develops.