Legendary cryptocurrency exchange BitMEX has announced that it is shutting down.
HDR Global Trading Limited, the owner of the exchange, has "made the difficult decision" to close operations following a strategic review of the business.
The exchange has stated that it is "proud" of its legacy, which has surpassed 11 years.
The cryptocurrency trading platform, which used to attract plenty of risk-seeking investors, is primarily known for inventing 100x leveraged perpetual swaps that ended up revolutionizing the industry. Today, nearly every major derivatives exchange, including Binance, Bybit, OKX, and Deribit, uses such contracts.
Its users generated exceptionally high trading volumes, and the exchange accounted for roughly 50% of the global futures open interest of its influence around 2019. The BitMEX liquidation cascade during the March 12–13, 2020 "Black Thursday" crypto crash was a pivotal event in crypto market history.
BitMEX's dominance began to rapidly erode in 2020 after U.S. regulators charged its founders, including CEO Arthur Hayes, with violating anti-money laundering rules. Competitors such as Binance Futures, Bybit, and FTX rapidly gained market share, chipping away at the exchange's massive dominance.
The exchange gained compliance cred while losing its influence. After his legal troubles, Hayes reinvented himself as a crypto macro commentator and investor and obtained a full pardon.
Funds are safe
BitMEX has reassured investors that their funds are safe in its announcement. "We want to reassure you that your assets remain fully safe and under your control during this transition period. This announcement is just to give enough time to ensure a smooth withdrawal process for everyone," the exchange said.
Users have been encouraged to close their positions and withdraw their funds as soon as convenient.
CZ reacts
Binance founder Changpeng Zhao has reacted to the wind-down by showing respect for Hayes.
He claims that BitMEX did not survive the "war on crypto" from the previous admin.
Dan Burgin
U.Today Editorial Team
