BitMEX Halts Crypto Trading as Shutdown Takes Effect, Withdrawals Remain Open
Key Takeaways
- •BitMEX, a crypto derivatives exchange launched in 2014, ended all trading operations on Wednesday at 4:00 UTC, with users still able to withdraw funds through the website.
- •API withdrawals will be disabled on Sept. 28, after which account holders, including those using automated tools, must process withdrawals through the web platform.
- •Owner HDR Global Trading Limited attributed the closure to a strategic review of the business and the broader crypto industry, stating it was not linked to legal or regulatory issues.
- •BitMEX introduced perpetual swaps in 2016 with leverage of up to 100 times, a contract type that has since become a standard instrument across the crypto derivatives market.
- •Days before the shutdown, the Celsius bankruptcy estate sued five BitMEX-linked companies seeking Bitcoin worth nearly $490 million over alleged fraud, market manipulation and wrongful liquidations involving 6,360 Bitcoin during the March 2020 market crash.
Crypto derivatives exchange BitMEX ended all exchange operations at 4:00 UTC on Wednesday, completing a wind-down first announced two months earlier after more than 11 years in operation. The shutdown closes out one of crypto's longest-running trading venues — a platform whose core product innovation outlives the exchange itself.
The platform no longer supports trading or deposits, but users can still log in and withdraw their remaining balances through its website, BitMEX announced in an X post on Wednesday.
The shutdown is being carried out in stages. As part of the gradual phaseout, BitMEX will disable application programming interface (API) withdrawals on Sept. 28, meaning users will need to process withdrawals through the web platform from that date — a change that account holders using automated withdrawal tools will need to act on. The company said users' funds remain secure and urged customers to withdraw any remaining balances.
BitMEX reiterated that its owner and operator, HDR Global Trading Limited, decided to close the exchange after a strategic review of the business and the broader crypto industry, and that the closure was not linked to legal or regulatory issues. The company first announced the plan on July 23, when it said exchange services would cease on Sept. 23.
Launched in 2014 and co-founded by Arthur Hayes, Benjamin Delo and Samuel Reed, BitMEX grew into one of the crypto industry's most prominent derivatives venues. It helped popularize perpetual swaps — futures-like contracts with no expiration date that the platform introduced in 2016 — offering leverage of up to 100 times. The perpetual swap has since become a standard instrument across the crypto derivatives market, a product whose adoption now spans the industry even as its originator exits the stage.
The closure came days after the Celsius bankruptcy estate sued five BitMEX-linked companies, alleging fraud, market manipulation and wrongful liquidations tied to 6,360 Bitcoin during the March 2020 market crash. The estate is seeking Bitcoin worth nearly $490 million at the time the lawsuit was reported. Celsius Network, once among the largest crypto lenders, filed for Chapter 11 bankruptcy protection in July 2022.
Source: Cointelegraph
