BitMEX, the exchange that invented perps, is shutting down

BitMEX, the Seychelles-based cryptocurrency derivatives exchange known for pioneering the 100x leverage perpetual swap, announced it will shut down operations on September 23, 2026. The parent company, HDR Global Trading Limited, has halted new account registrations and is urging all users to close positions and withdraw funds immediately. To manage an orderly wind-down, the platform will forcibly close all open contracts before the shutdown, with strict limits starting August 26 preventing the opening of new positions. Users who fail to withdraw their assets by the deadline will face maintenance fees, either a monthly $50 charge or an annual 1% levy on their holdings.

BitMEX’s closure comes after a decline in its market share, as liquidity, major traders, and market makers moved to competitors offering deeper order books, more listings, and fewer regulatory complications. Despite the challenges, the exchange has maintained a clean security record with no loss of user funds to hacks or exploits during its 11 years of operation since its 2014 launch. However, regulatory pressures have been significant, with BitMEX previously pleading guilty in 2020 to failing to implement adequate anti-money laundering controls, leading to the resignation of its founders and key executives. Recently, BitMEX lost its CEO, CFO, and head of growth, underscoring a turbulent period preceding the shutdown.

At its peak in 2019, BitMEX commanded around 57% of the global crypto derivatives market and handled over $1 trillion in annual trading volume. Daily turnover reached as high as $8 billion in mid-2018, setting industry records. While the exchange does not handle fiat currency, it warns of potential withdrawal delays due to Bitcoin network congestion but has confirmed that its current proof of reserves shows full coverage of customer assets. BitMEX’s wind-down marks the end of a significant chapter in crypto derivatives trading, as its innovative perpetual swap contract helped shape the structure of modern digital asset markets.