Crypto Exchanges BitMEX and BitMart Shut Down Amid Bear Market

Two major cryptocurrency exchanges, BitMEX and BitMart, have announced their shutdowns in just one week. BitMart will cease trading services on August 26, while its platform operations will officially terminate on January 31, 2027.

BitMEX's closure was previously announced by the exchange on July 23, with new user registrations stopped immediately and a planned official close on September 23, 2026. CZ, founder of Binance, expressed regret and attributed BitMEX's downfall to the 'War on Crypto' during the Biden administration.

Flashbots Strategic Director Hasu suggested that the structural issues of the BitMEX insurance fund may be a significant reason for the company's choice to close rather than sell. He pointed out that the fund did not use isolated account management and lacked a clear upper limit on fund size, which could create incentives for more aggressive liquidation of users.

The shutdowns of exchanges like BitMEX and BitMart have sparked discussions in the market regarding the reasons behind their closures. Some believe that the 'cash cows with continuous cash flow' are facing financial difficulties due to high-pressure regulatory policies imposed on the crypto industry during the Biden administration, while others argue that internal management issues or even fund explosions may be the main reasons.