BitMEX exchange shutdown set for Sept. 23 as new sign-ups stop
BitMEX has stopped new registrations and told users to withdraw funds before a Sept. 23 closure after a board review of the exchange.
By Rafael Ortiz · Fintech Correspondent
· 3 min read
BitMEX has halted new customer registrations and plans to close the crypto trading venue on Sept. 23, setting a deadline for clients to remove funds from the platform. The BitMEX exchange shutdown follows a board review by HDR Global Trading Limited, the company that owns and operates the exchange, according to an announcement on BitMEX’s website.
The company said the decision followed a review of both its own business and the wider crypto industry. BitMEX told customers to withdraw assets before operations cease, while saying the closure was a difficult decision for the company.
Launched in 2014, BitMEX became known in crypto markets for derivatives trading and for what it describes as the creation of the 100-times leverage perpetual swap. A perpetual swap is a derivative contract used to take exposure to a crypto asset without a fixed expiry date; leverage allows traders to control a larger position than the cash or collateral they post, increasing both potential gains and losses.
Why is BitMEX shutting down?
BitMEX attributed the closure to a strategic review of the business and the broader crypto sector. The company did not cite a single operating event as the cause in its announcement.
The closure comes during a weaker period for digital asset prices, Reuters reported. Bitcoin, the most widely traded cryptocurrency, has surrendered most of the gains it made last year, according to the Reuters report.
Thomas Probst, a research analyst at Kaiko, told Reuters that the exchange business is highly competitive and that BitMEX’s closure may point to larger platforms gaining more weight at the expense of smaller or newer rivals. He also said the market impact should be limited because BitMEX has less than 0.01% market share.
BitMEX highlighted its security record in announcing the shutdown, saying it had not lost customer funds to hacks during more than 11 years of operations. The statement contrasted that record with problems elsewhere in the sector.
The announcement came shortly after crypto wallet SecondFi said it would close after an attack that stole $2.4 million from users. SecondFi disclosed its shutdown on Wednesday.
What is the regulatory backdrop?
BitMEX’s history includes a high-profile anti-money-laundering case. The company’s co-founders pleaded guilty in 2022 to failing to establish compliant anti-money-laundering controls and were pardoned last year by President Donald Trump.
Trump supported the digital asset industry during the 2024 campaign, and crypto prices rose after he returned to office. Since then, prices have fallen, while US lawmakers continue to debate legislation for the sector.
On Wednesday, Sen. Cynthia Lummis, Republican of Wyoming, released an amended draft of the Clarity Act that included a ban on federal officials issuing or sponsoring digital assets. Lummis said she hoped to reach an agreement with Democratic colleagues within days.
Ethics concerns, including questions around Trump’s involvement with crypto ventures, have been among the issues complicating the bill’s progress in the Senate, according to prior reporting cited by PYMNTS.
For BitMEX customers, the immediate operational issue is the withdrawal deadline. The exchange has stopped onboarding new users and has directed existing clients to remove their funds before the Sept. 23 shutdown date.
This story draws on original reporting from PYMNTS.
