Bitcoin Exchange Regulation Other

BitMEX Closes Doors as the Perpetual Swap It Invented Rules Rivals

Importance High

HDR Global Trading Limited, the parent company of BitMEX, announced on July 23 that the exchange will shut down completely on September 23, 2026, at 04:00 UTC. New account registrations ceased the same day, citing a strategic review of its business and the broader crypto industry.

BitMEX invented the perpetual swap contract in May 2016 when it listed XBTUSD. The product used a funding rate from foreign exchange markets to keep its price tied to spot Bitcoin without an expiration date, paired with up to 100x leverage. This gave retail traders continuous access to high-leverage positions for the first time. Other exchanges later copied the design, and perpetual contracts now dominate crypto derivatives volume.

The shutdown ends more than 11 years of continuous operation. BitMEX never lost customer funds to a hack, a record the company highlighted in its announcement.

Wind-Down Timeline

  • New accounts stopped immediately on July 23.
  • On August 26, risk limits take effect; users can only reduce or close open positions.
  • On September 23, all trading ends, remaining positions are force-closed, and users retain access only to view balances and withdraw funds.

Staked BMEX tokens have been unstaked and returned to accounts. BitMEX warned users to expect elevated phishing attempts tied to the news and noted that blockchain confirmation times, especially for Bitcoin, could slow some withdrawals.

After September 23, any user with KYC-verified funds remaining on the platform will pay a monthly fee equal to $50 or 1% of the balance per year, whichever is greater. BitMEX said it will continue contacting users who have not withdrawn.

Regulatory and Market Challenges Arthur Hayes, Ben Delo, and Samuel Reed launched BitMEX in 2014. In October 2020, the U.S. Department of Justice and Commodity Futures Trading Commission charged the company and its founders with failing to run an adequate anti-money laundering program. The company pleaded guilty and was fined $100 million in January 2025. In March 2025, President Trump pardoned the three founders, a former executive, and the company itself.

By the time of the shutdown, BitMEX held roughly 0.08% of perpetual futures volume, down from a share that once exceeded 50%. Competitors such as Binance, Bybit, OKX, and Hyperliquid had pulled ahead with deeper liquidity and broader product lines. The exchange’s CEO, CFO, and head of growth all left in the weeks before the announcement.

Users have until September 23 to close positions and withdraw funds.

Source: https://news.bitcoin.com/bitmex-closes-doors-as-the-perpetual-swap-it-invented-rules-rivals/