BitMEX Shuts Down, Handing User Base to Four Major Winners

BitMEX, one of the pioneering crypto exchanges, has officially shut down after an eleven-year run. Its perpetual swap product, which it invented and was used by all other derivatives platforms, is now a standard in the industry.

At its peak, BitMEX controlled over half the market for Bitcoin futures, but by July this year, that had dropped to 0.08% of daily volume, around $84 million per day. The exchange's CEO, CFO, and chief growth officer all left in June, followed by the closure a month later.

The business was not forced out by regulators or hacks, no customer funds were lost in eleven years, but rather due to declining unit economics and rising compliance costs. BitMEX's founders had pleaded guilty to Bank Secrecy Act violations in 2022, but those charges had already been cleared.

Users can still access their accounts and withdraw remaining balances, with the exchange encouraging users to do so as soon as possible.