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Comment by vmception | Hacker News Reader

What do you prefer to happen? They get curb stomped to oblivion leaving less options in the marketplace?

This is something US regulators weigh so I was wondering if you do too.

Yes, in a just universe BitMEX would be stomped into nonexistence, just not for this. They have consistently been by far the shadiest and scummiest 'exchange' around.

>They have consistently been by far the shadiest and scummiest 'exchange' around.

Can you provide some context for people who's not in the loop?

Given how bad some of these centralized exchanges have been over the years, I can't imagine this is true.

1. Africrypt - 3.6B USD, founders disappeared (https://www.bloomberg.com/news/articles/2021-06-23/s-african...)

2. Bitfinex 36% haircut hack (https://www.reuters.com/article/us-bitfinex-hacked-hongkong-...) - not to mention being in bed with Tether for a long time.

3. MtGox... the list goes on.

What has that got to do with BitMEX?

The question that was asked was:

>> They [BitMEX] have consistently been by far the shadiest and scummiest 'exchange' around.

> Can you provide some context for people who's not in the loop?

Your examples show some negatives of cryptocurrencies, but none of them have anything to do with BitMEX and therefore don't answer the question asked.

I think his point is that given that other exchanges have done much worse (eg. running away with customers' funds, customers getting 36% haircut), the fact that bitmex hasn't done those things (presumably, I haven't been keeping up to date) means that they can't be the scummiest.

Oh, I see. The other exchanges were much worse so BitMEX couldn't be shadiest and scummiest around. I stand corrected.

BitMEX have been accused of trading against their own, often leveraged, customers to manipulate prices unfavorably and liquidate them.

How well supported are these accusations? Without additional evidence it's hard to tell whether these accusations are because of disgruntled traders who made bad trades, or actual malfeasance by bitmex. For instance, if they were really "manipulating prices unfavorably", you'd expect their mark price to deviate drastically from other exchanges. Is there evidence of this happening?

What evidence is there of this? They have a separate trading desk who market make their illiquid products that nobody wants to trade. But the claim you made sounds like fake news from social media.

Nah, they are by far the most honest. I would rather trust shitmex than the CME.

Isn't that the definition of too big to fail?

Yes.

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