Key highlights:

  • BitMEX said it will stop operations in late September.
  • Users have been asked to withdraw funds before the deadline.
  • The exchange was the first to offer crypto perpetual swap services.

Arthur Hayes’ BitMEX shared that it will permanently shut down operations on September 23, 2026. This was the first exchange to introduce perpetual swap contracts.

The company shared the news in a message to users, calling the decision a difficult one after over a decade in business. It also told customers to begin closing their positions and withdrawing their assets as soon as possible.

“We want to reassure you that your assets remain fully safe and under your control during this transition period,” they said. “From today we strongly encourage all users to close their positions and withdraw their funds as soon as convenient.”

BitMEX begins final wind-down process

In the press release, the firm said operations will stop at exactly 04:00 UTC on September 23. New account registrations have been stopped following what HDR Global Trading Limited, the exchange's parent company, called a strategic business review.

Trading will continue for a few more weeks, but there are still restrictions that will come along the way.

The platform will be in a reduce-only mode from August 26. This means traders will not be able to open new positions. Old positions will be closed gradually before it finally shuts down business.

Then, by September, trading services will stop completely. Customers will still be able to view transaction history and withdraw their assets.

The exchange also warned that users who leave funds on the platform after the deadline will have to pay extra fees. Assets not withdrawn will be charged either a $50 monthly maintenance fee or an annual fee of 1% of the total balance.

Additionally, the company told users to complete withdrawals as early as possible. They reckoned that heavy activity on the Bitcoin network could slow down transactions in the final weeks.

A pioneer that changed crypto trading

The firm was founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed. Not long after, it became a top exchange in the crypto space.

BitMEX invented the perpetual swap contract. These contracts do not expire, unlike traditional futures contracts. They use funding payments to keep prices close to the spot market.

Notably, during the crypto boom in 2017 and 2019, the exchange led in derivatives trading. This was thanks to its offering of BTC perpetual contracts with leverage of 100x.

The platform saw over $1 trillion in annual trading volume, controlling 57% of the crypto derivatives market. Daily trading volume also topped $8 billion in July 2018.

Those numbers brought in competition into the space. New centralized exchanges offered better liquidity and more trading pairs. So as the liquidity moved elsewhere, BitMEX lost the top spot it enjoyed.

Regulatory pressure also took its toll

In 2020, U.S. authorities accused the company of not maintaining proper anti-money laundering controls and violating the Bank Secrecy Act. After this, founders Arthur Hayes, Ben Delo, and Samuel Reed had to step down from their positions.

The company then pleaded guilty and paid a $100 million fine to resolve the case. The exchange was still in business after the settlement, but the lawsuit had already damaged its reputation.

The shutdown also comes just after the firm lost its CEO, CFO, and Head of Growth. Even with all the challenges it faced, BitMEX did not suffer any major hack or smart contract exploits.