Sani | TimechainIndex.com
@SaniExp
Founder | Timechain Archmage | ₿ Addresses Labeling Services | Lightning Donations: sani@blink.sv
Joined May 2022
622 Following 18K Followers
Now these withdrawals of ~33,000 BTC make sense, they must have been planning this since the end of last year
Many are speculating that the reason for the BitMEX shutdown is to unlock its roughly $270 million Insurance Fund.
The Insurance Fund isn’t customer-owned.
It’s controlled by BitMEX and exists to absorb liquidation losses and prevent auto-deleveraging (ADL).
Once all positions are settled, customers are paid, and no liabilities remain, any surplus would generally belong to BitMEX’s parent company unless otherwise required by its terms or law.
If no buyer was willing to pay a premium for the fund in an acquisition, winding down the exchange could be one way to ultimately realize that value.
It’s a plausible theory, though BitMEX has not said this is the reason for the closure.
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