Leading the crypto headlines over the past 24 hours: reports emerged there were more investors cashing out, than in, during the huge crypto price spike this week; Bitfinex had their motion to modify an injunction from the Attorney General granted; and Poloniex made the decision to disable nine altcoin markets for U.S. customers.
The market-wide price rally came to an abrupt halt overnight. At the time of writing, bitcoin (BTC) and ether (ETH) are trading at $7,297.9 (-8.7%) and $239.9 (-8.1%), respectively. Additionally, the MVIS CryptoCompare Digital Assets 10 Index is currently tracking at 3,698.1, a 4.9% rise over the past 24 hours.
Investors Cashed Out Whilst Bitcoin Spiked, Blockchain Data Startup Finds
Despite the substantial price rises seen in the cryptocurrency market this week, there has been more money leaving the market than entering it. That is according to London-based blockchain data startup, TokenAnalyst, who told Bloomberg it estimates withdrawals from trading platforms including Bitfinex, BitMEX, Binance, and Kraken exceeded inflows by roughly $622 million over the past five days.
For Bitfinex in particular, it’s seen customers withdraw more than $1.7 billion worth of bitcoin and ether since April 26, a day after the Supreme Court of New York received a legal petition filed by the New York Office of the Attorney General (OAG). This filing alleged Bitfinex lost $850 million and subsequently used funds from affiliated stablecoin operator, Tether, to hide the shortfall.
New York Supreme Court Grant’s Bitfinex’s Motion to Modify Injunction
Speaking of the OAG’s allegations against iFinex – the parent company of Bitfinex and Tether – yesterday saw the Supreme Court of New York grant Bitfinex’s motion to modify an injunction from the OAG.
According to an announcement by Bitfinex, the “court’s order allows Bitfinex and Tether to continue their normal business activities.” Additionally, the order also states the original injunction by the OAG will expire in 90 days and that any motion to renew will be the responsibility of the OAG.
Poloniex Cuts Off U.S. Customers From Nine Altcoins
U.S.-based crypto exchange Poloniex announced it had chosen to disable the trading of nine altcoins for customers residing in the U.S. The nine altcoins were: Ardor (ARDR), Bytecoin (BCN), Decred (DCR), GameCredits (GAME), NEO Gas (GAS), Lisk (LSK), Nxt (NXT), Omni (OMNI), and Augur (REP).
Poloniex, which was acquired by fintech startup Circle last year, told customers a lack of regulatory clarity in the U.S. was the reason for their decision. Specifically, the crypto exchange explained “it is not possible to be certain whether U.S. regulators will consider these assets to be securities.” Poloniex emphasised the fact the nine altcoins will remain available for trading to customers outside the U.S.