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BitMEX shuts down exchange operations after 11 years

BitMEX shuts down exchange operations after 11 years

Money Moves

Pioneering crypto derivatives exchange ends trading, keeps withdrawals open with fees for unwithdrawn balances

2 days ago: Withdrawal access expanded

Overview

Updated 2 hours ago

BitMEX stopped all trading at 04:00 UTC on September 23, ending the 11-year run of the exchange that created the perpetual futures contract. Users can still log in and withdraw balances, but anyone leaving funds behind faces a monthly fee of $50, or 1% of assets per year, whichever is greater.

The shutdown follows a two-month wind-down that began July 23, when parent HDR Global Trading announced the closure after a strategic review. BitMEX had been losing ground in the derivatives market it helped build, even as perpetual futures became crypto's most-traded instrument.

Why it matters

Anyone holding funds on BitMEX faces monthly fees until they withdraw, and the crypto derivatives market loses the exchange that invented its dominant product.

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Key Indicators

11 years
Years of operation
BitMEX ran from 2014 to September 2026.
$100M
Bank Secrecy Act penalty
Paid by BitMEX after its 2024 guilty plea to US charges.
$50
Monthly minimum account fee
Charged on unwithdrawn balances, or 1% of assets per year, whichever is greater.
6
Jurisdictions reopened for withdrawals
US, Canada, Hong Kong, Bermuda, Seychelles, and Myanmar customers gained withdrawal access after the shutdown.

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People Involved

Organizations Involved

Timeline

January 2014 September 2026

7 events Latest: 2 days ago
Tap a bar to jump to that date
  1. Withdrawal access expanded

    Latest Regulatory

    Users in the US, Canada, Hong Kong, Bermuda, Seychelles, and Myanmar gain withdrawal access, previously barred from the platform.

  2. Exchange operations cease

    Closure

    BitMEX stops trading, deposits, and new positions. Withdrawals remain available. Monthly fees begin for unwithdrawn balances.

  3. New positions blocked

    Regulatory

    Risk limits take effect, preventing users from opening new positions and allowing only position reductions ahead of the shutdown.

  4. HDR Global announces closure

    Announcement

    Parent HDR Global Trading announces the exchange will close on September 23 after a strategic review.

  5. BitMEX founded

    Launch

    Arthur Hayes, Ben Delo, and Samuel Reed launch the exchange, later pioneering perpetual futures contracts.

Scenarios

1

BitMEX completes orderly wind-down, most funds returned

Likely Resolves by Q2 2027

Discussed by: BitMEX's official announcements, CoinDesk

BitMEX says its Proof of Reserves shows all assets exceed liabilities. If the process goes as planned, the exchange keeps withdrawals open through early 2027, the bulk of balances get returned, and the wind-down finishes with only minor residual funds. Monthly fees for unwithdrawn balances push users to move their money quickly.

2

Monthly fees and compliance delays strand some user balances

Possible Resolves by Q2 2027

Discussed by: Whale Alert, BitInsider

KYC-verified users who leave balances face a monthly fee of $50 or 1% annualized, whichever is greater. BitMEX warned it may increase the fee over time. Users who fail compliance checks or face network delays could see funds stuck for extended periods as the wind-down progresses.

3

Sanctions reviews stall withdrawals for restricted-country users

Uncertain Resolves by Q1 2027

Discussed by: Cryptoslate

Users in Cuba, Iran, North Korea, and Russian-occupied regions of Ukraine remain blocked from the withdrawal reopening. Iranian nationals abroad and Russians in the EU or Switzerland can request individual review, but the process is case-by-case and could drag on for months. Some users may never recover their funds.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

February 2014

Mt. Gox collapse (2014)

Mt. Gox, the Tokyo exchange handling most of the world's Bitcoin trades, filed for bankruptcy in February 2014 after hundreds of thousands of Bitcoins vanished. CEO Mark Karpelès was later arrested over the disappearance of customer funds.

Then

The exchange collapsed within weeks, leaving customers with nearly worthless bankruptcy claims that dragged on for years.

Now

Creditor repayments, in Bitcoin and cash, finally began in 2024, more than a decade after the collapse, as Bitcoin's price had soared.

Why this matters now

Mt. Gox showed how an exchange shutdown can destroy customer value through theft and mismanagement. BitMEX's wind-down is voluntary, with the company saying assets exceed liabilities.

November 2022

FTX collapse (2022)

FTX, one of the world's largest crypto exchanges, filed for Chapter 11 bankruptcy in November 2022 after revelations that customer funds were used to cover losses at affiliated trading firm Alameda Research. Founder Sam Bankman-Fried was later convicted of fraud.

Then

Billions in customer funds went missing, triggering a crypto credit crisis and intense regulatory scrutiny across the industry.

Now

The collapse pushed exchanges toward proof-of-reserves transparency. FTX's estate has since recovered assets and begun partial repayments.

Why this matters now

FTX was a catastrophic exchange failure driven by fraud. BitMEX's shutdown comes from a strategic decision instead, offering a rare example of a crypto exchange winding down with customer funds intact.

Sources

(9)