Cryptocurrency exchange BitMEX will shut down in September after 11 years, the firm announced Friday.
New user registrations stopped immediately Friday. While users can continue buying and trading crypto through Aug. 25, BitMEX will enter a reduce-only mode Aug. 26, after which users can only reduce or close open positions.
All open positions will be force-closed Sept. 23. Thereafter, any account with remaining assets will incur a fee of $50 or 1%, whichever is greater, each month.
“Following a strategic review of the business and the broader crypto industry, the board of HDR Global Trading Limited, owner and operator of BitMEX, has decided to close the exchange,” the company wrote in a blog post Friday.
BitMEX was the first exchange to offer the perpetual swap in 2016, something that reshaped crypto trading and has since been adopted by other exchanges.
“This legacy reflects our commitment to bringing innovative and sophisticated risk management tools for all users,” the company wrote. “And we continue to take pride in our robust security posture, which, unlike many of our peers, has resulted in BitMEX experiencing zero funds lost to hacks during its entire operating history of over 11 years.”
BitMEX held $4.4 billion in assets at its peak. It now holds roughly $900 million, according to CoinMarketCap.
The cryptosphere has experienced a downturn since October. Bitcoin, which at its peak was worth $126,080, was trading at $64,535 as of Monday morning. At the same time, the industry has gained legitimate footing with regulation including the Genius Act and the not-yet-passed Clarity Act.
President Donald Trump, previously a crypto detractor, campaigned on making the U.S. “the crypto capital of the world” – and has issued executive orders to the tune since returning to the White House.
BitMEX had run into legal trouble a handful of times, including by the Commodity Futures Trading Commission and FinCEN in 2021 for anti-money laundering violations. Last year, the Justice Department fined the company $100 million for allegedly flouting anti-money laundering laws to boost its revenue.
