BitMEX Closes Doors as the Perpetual Swap It Invented Rules Rivals

HDR Global Trading Limited, the exchange’s parent company, announced the closure on July 23. New account registrations stopped the same day. The company cited a strategic review of its business and the broader crypto industry.

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

A Wind-Down With Set Dates

The exchange laid out a three-stage timeline. New accounts stopped immediately. On August 26, risk limits take effect, and 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 already been unstaked and returned to accounts. BitMEX warned users to expect elevated phishing attempts tied to the news and said blockchain confirmation times, particularly for Bitcoin, could slow some withdrawals.

Anyone who leaves KYC-verified funds on the platform after September 23 will pay a monthly fee equal to $50 or 1% of the balance per year, whichever is greater. BitMEX said it will keep contacting users who have not withdrawn.

How the Perpetual Swap Took Over

Arthur Hayes, Ben Delo, and Samuel Reed launched BitMEX in 2014. Hayes had traded equity derivatives at Deutsche Bank and Citibank in Hong Kong before turning to bitcoin.

On May 13, 2016, BitMEX listed XBTUSD, the first perpetual swap contract. The product used a funding rate borrowed from foreign exchange markets to keep its price tied to spot Bitcoin without an expiration date. Paired with up to 100x leverage, it gave retail traders continuous access to high-leverage positions for the first time.

Other exchanges copied the design. Perpetual contracts now make up most crypto derivatives volume across centralized and decentralized platforms.

Regulation and Market Share Slipped Away

BitMEX’s growth drew scrutiny. In October 2020, the Department of Justice and the 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 once above 50%. 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.