Noted trader has BitMEX account terminated after criticising policy on Bitcoin Cash hard fork
A noted cryptocurrency trader has been suddenly shut out of BitMEX, ostensibly for being a US citizen – but implies there is more to it than that.
According to a post on his Twitter account, noted crypto-trader Tone Vays has had his account with the BitMEX exchange terminated at short notice due to the fact he is a US citizen.
Despite the exchange being closed to US customers since a tightening of policies last year, Vays has been a long-time promoter of the high-leverage crypto derivatives platform, based in the Seychelles – apparently using a VPN to access its services. However, he took to Twitter earlier today to break the news of the exchange’s decision to force him to close all his positions and leave the site, and to bemoan the loss of income from the 900 or so affiliates he has bought to them via his livestreams, YouTube videos and website.
Just got my @BitMEXdotcom account terminated on suspicion of being a US Citizen. Anyone else find the timing of this odd?
The 900+ affiliates that accounted for half my income r gone going forward.
After #Unconfiscatable Conf expect prices on all services offered by me to rise. https://t.co/6bShmcdBEF
— Tone Vays [@Bitcoin] (@ToneVays) November 12, 2018
Interestingly, Vays seems to use the tweet to also imply that his ban is perhaps connected to recent comments he made regarding the BitMEX policy on the upcoming Bitcoin Cash hard fork, expected on November 15th. Vays’ comments point out that, unlike the original Bitcoin/Bitcoin Cash fork, the highly acrimonious nature of the split between Bitcoin Cash ABC and Bitcoin Cash SV has the potential to have very different implications for traders.
His tweet references the fact that there have been threats from the Craig White/Calvin Ayres-backed BCH SV (Satoshi’s Vision) side that they will mount an immediate 51% attack on the competing fork, in an attempt to force wallets and other services to avoid their opponent – the Roger Ver/BitMain-backed Bitcoin ABC.
Thus, the trader’s point is that BitMEX decision to tie their futures BCHZ18 futures contract pricing to the BCH ABC coin is essentially asking traders to bet on that code surviving and flourishing through any attack. Conversely, as he concludes, anyone shorting that BCHZ18 contract could pocket every penny of their, potentially highly leveraged, contract value should the price of BCH ABC be forced down to zero by what would be a malicious attack.
Interestingly, it’s not the first problem Vays has faced related to the Bitcoin Cash hard fork. Earlier in the week, he was banned from Livestreaming on YouTube in connection to a video on the subject – much to his incredulity.
Is #CryptoTwitter ready for Greatest BULLSHIT in a while. I’ve been BANNED from LIVE STREAMING for Setting Up a Video w/ Follow Title !!!
“#OnTheRecord w/ @ProfFaustus – #BCash ( $BCH vs $BSV) Hard Fork”
Interview w/ will be Recorded & Uploaded – I HOPE !!! #Bitcoin pic.twitter.com/wuOj5mrkxn
— Tone Vays [@Bitcoin] (@ToneVays) November 10, 2018
BitMEX terms of service initially state that “Residents of the United States of America or Québec (Canada) are prohibited from holding positions or entering into contracts at BitMEX”, which led Vays to bemoan that he only spent around 30 days in the US last year. However, under section 6 of the BitMEX rules – Warranties and Representations – it clearly state that traders agree that:
“You are authorised to access and use the Website; In particular, the jurisdiction where you reside, hold citizenship, or conduct business allows you to utilize BitMEX’s services;”
Therefore it would appear he doesn’t really have a leg to stand on. However, the timing of the decision will remain a source of debate, on would suspect.
Vays has informed customers and entities that he advises to expect the price of his services to rise to make up for lost BitMEX income, as the site is not willing to allow him to profit from his affiliates even if he ceases to trade.
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