BitMEX's $270M Insurance Fund Sparks Concern Over Post-Closure Plans

BitMEX's insurance fund, which holds around $270 million in Bitcoin and USDT, has raised suspicions among customers after they found out that the exchange will be closing its doors on September 23.

The fund was initially used to cover losses for customers who traded using BitMEX-provided leverage, but it seems to have grown significantly during periods of market stress, allowing it to absorb larger losses without shrinking in value.

However, after a rebalancing in November 2025, the fund's value dropped from tens of thousands of BTC to around 3,600, with some speculating that BitMEX owners might be keeping the remaining funds for themselves.

A class-action lawsuit has been filed against BitMEX, alleging that the exchange liquidated customer positions and force-closed leveraged bets during periods of market stress, allowing it to profit from customers' losses.