BitMEX Struggles to Sell Amid Founders' Large Shareholdings

BitMEX, a prominent cryptocurrency derivatives exchange, has been actively pursuing a sale for two years prior to its planned shutdown on September 23. The exchange was seeking a valuation of around $1 billion in any potential deal.

The sale efforts were met with obstacles, including the founders' significant shareholdings, reputational damage from past criminal charges, and slowing growth. Potential buyers, such as rival exchanges and crypto payments platform Exodus, were reportedly hesitant to make a move due to these challenges.

Industry insiders suggest that the co-founders of BitMEX still hold substantial stakes in the company, despite stepping back from management following their 2020 criminal charges in the US. This ownership structure may have contributed to the difficulty in finding a suitable buyer.