It seems deluk is investing with Bitfinex (blocked in US), which has lots of ongoing issues; see Patrick McKenzie on why the whole thing is a fraud that is down several hundred million and is likely to seize accounts https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/.
IIRC some individual investors in Binance (also supposed to be blocked for US investors) were being targeted for investigation by CFTC; there’s an aspect of lending that lead to Know Your Customer violations (very hazy on specifics).
The exchange is mentioned in the OP and is not Bitfinex. Putting on this trade by shorting MicroStrategy and holding bitcoin is problematic if your broker doesn’t let you use your bitcoin to collateralize your MicroStrategy short.
It seems deluk is investing with Bitfinex (blocked in US), which has lots of ongoing issues; see Patrick McKenzie on why the whole thing is a fraud that is down several hundred million and is likely to seize accounts https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/ .
IIRC some individual investors in Binance (also supposed to be blocked for US investors) were being targeted for investigation by CFTC; there’s an aspect of lending that lead to Know Your Customer violations (very hazy on specifics).
A legal way to put on this trade is to short MicroStrategy (Co that bought bitcoin) and buy bitcoin yourself. https://www.coindesk.com/microstrategy-bitcoin-michael-saylor-valuation
The exchange is mentioned in the OP and is not Bitfinex. Putting on this trade by shorting MicroStrategy and holding bitcoin is problematic if your broker doesn’t let you use your bitcoin to collateralize your MicroStrategy short.