Following a heated debate at the Asia Blockchain Summit, Dr. Nouriel Roubini ramped up his campaign against BitMEX and its CEO, Arthur Hayes. In a recent op-ed piece, Roubini accused Hayes of being involved in “systematic illegal activity” at BitMEX, saying the exchange’s 100-to-one leverage and liquidation profits should be banned.
Dr. Doom takes another jab at BitMEX
After a heated debate at the Asia Blockchain Summit in Taipei, the crypto industry’s most vocal critic took another jab at Arthur Hayes. Nouriel Roubini, a professor of economics at the Stern School of Business, published an op-ed piece on Project Syndicate earlier this week, where he accused BitMEX of being involved in shady and illegal activities.
The article, titled “The Great Crypto Heist,” starts as a criticism of the current state of the crypto industry, but quickly turns into a hit-piece targeted at Hayes and his exchange. Roubini said that “some of the biggest crypto players may be openly involved in systematic illegality.” That, he noted, includes BitMEX.
Roubini criticized BitMEX for allowing its traders to take on too much risk. He said that with the exchange’s 100-to-one leverage, even a 1 percent change in the price of the underlying asset could trigger a margin call that would wipe out all investments.
Roubini also accused BitMEX for profiting from its liquidation fund. Citing a 2018 Medium post from an anonymous blogger as a source, he said that, at times, liquidations account for up to half of BitMEX’s revenue.
Skirting AML and KYC regulations, front-running clients on their internal for-profit trading desk, and providing a platform for terrorists from Russia and Iran to launder money are some of the other accusations mentioned in the article.