Share this article
US Derivatives Traders Are Easily Bypassing Blocks on Offshore Exchanges: Report
U.S.-based traders are able to use virtual private networks designed to mask the country where they are based. Or they simply lie about where they are from.
Updated Sep 14, 2021, 1:33 p.m. Published Jul 30, 2021, 11:26 a.m.
U.S. crypto traders are able to easily bypass blocks on overseas derivatives platforms, new research has found.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
- American crypto traders are getting round measures that are supposed to block them from using offshore exchanges such as FTX and Binance, the Wall Street Journal reported Friday, citing research by data firm Inca Digital.
- U.S.-based traders are able to use virtual private networks designed to mask the country where they are based. Or they simply lie about where they are from.
- Inca's technology is used by the Commodity Futures Trading Commission (CFTC), the body that regulates derivatives trading in the U.S. Offshore exchanges operate outside of the CFTC's purview and can avoid some of the rules relating to investor protection and market manipulation.
- The research was conducted by scanning Twitter for exultant tweets about successful trades and so on.
- Inca found 2,000 such tweets, of which 372 belonged to Americans. It is likely this represents only a tiny proportion of the total number, the Journal said.
- Of the 372, 240 were using FTX, prompting the Hong Kong-based exchange to say it will tighten its procedures to block U.S. users.
- Until this week, FTX users were able to gain entry-level access with a daily withdrawal limit of $9,000 without needing to provide identification documents.
Read more: Binance Says It’s Cutting Leverage Limit to 20x, a Day After FTX Announces the Same
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
ETH, ADA, XRP Lead Gains as Bitcoin Edges Higher on Fed Rate Cut Expectations
Asian equities opened the week slightly higher ahead of a heavy run of central bank decisions, including a Federal Reserve meeting where markets have largely priced in a 25-basis-point rate cut.
What to know:
- Bitcoin traded above $91,300 as Asian equities opened higher, with markets anticipating a Federal Reserve rate cut.
- Bitcoin rose 2% in 24 hours, facing resistance near $94,000, while Ether gained 3% to $3,135.
- Despite crypto market gains, sentiment remains cautious, with potential for a deeper slowdown without new liquidity.
Top Stories
