There is news that Bitmex is selling user’s data! However, Bitmex is denying it.

Bitmex is saying that they are very much transparent on how data is used.There are allegations on Bitmex regarding its new user agreement which will allow it to sell trading data to third-party firms.

On Tuesday, Bitmex announced that it had updated its Terms of Service Agreement, including changes to the intellectual property clause. When the updates go into effect, as of March 6th, BitMEX users will give up any rights of ownership for content posted on the platform.

Clause 3.4 states that HDR Group, which owns BitMEX, “shall be the sole owner of any derivative work produced by the HDR Group based on, or in any way connected with, your content, and shall have the right to use such derivative work for any purpose, commercial or otherwise, without any further obligation to you.”

They got quickly criticized for their publication, suggesting that BitMEX would be able to sell users’ data, including trading patterns, onto third-party trading firms. With this news, some Reddit user stated, institutional traders would be able to construct behavioral profiles on retail investors.
In a type of activity known as order flow trading, a firm with access to trading data could accurately determine the levels at which retail investors would buy and sell. A firm can profit from altering market conditions with this information.

For example, if sellers were only prepared to sell Ether (ETH), at $147 (the ETH price was $137 at press time), a firm armed with their trading data might put up a lower offer limit, undercutting the market and pushing other traders to sell for lower prices.

One Redditor, speaking on behalf of the exchange, denied the allegations.
“BitMEX is not selling customer data,” the Redditor commented. “The purpose of this notice is to inform users that we will soon be providing greater transparency about how your data is used within our network and with the services we use (alerting, recapture, Yubico, Fresh desk).”

In traditional markets Purchasing order flow is already common practice. In the early 1980’s, Bernie Madoff, was one of the first traders to pay brokerage firms for the right to execute their clients’ orders, oftentimes a penny or two per share, who is currently serving a life sentence for eleven federal felonies.

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