One of the pioneers of cryptocurrency derivatives trading and the creator of the 100x perpetual swap will permanently cease operations on September 23 after deciding to wind down the business.

The company has been active for more than 11 years, making the decision even more painful for the broader cryptocurrency industry.

Closing Down

The statement just published by BitMEX stated that the exchange will cease operations on September 23 this year at 04:00 UTC. Its parent company, HDR Global Trading Limited, said the move came after a strategic and detailed review of both the business and the crypto industry as a whole.

The trading platform has halted new account registrations and has urged existing users to close all open positions and withdraw their assets before the deadline.

BitMEX saw the light of day in 2014 and helped shape the modern crypto derivatives market. It introduced 100x leveraged perpetual swaps, a product that later became the industry standard and was eventually adopted by essentially every major crypto derivatives competitor. At its peak, BitMEX ranked among the world’s largest crypto exchanges, attracting professional traders with deep liquidity and advanced trading tools.

The statement further outlined the platform’s highly impressive security record, stating that no customers’ funds were ever lost to a hack throughout its near-decade-long existence.

What Went Wrong

Despite its growth in its initial years, US authorities went after the company’s founders in 2020 for violating anti-money laundering laws by operating the exchange without implementing adequate Know-Your-Customer (KYC) procedures. It later settled with the US, while the former CEO Arthur Hayes and other execs pleaded guilty to Bank Secrecy Act violations.

Although it remained open for years after resolving those cases, several competitors had emerged and taken a big chunk of its former market share.

BitMEX said trading will remain operational over the following months, but it will impose restrictions gradually as the shutdown approaches. After August 26, users will no longer be able to open new positions and will only be permitted to reduce existing ones. Customers will retain access to their accounts after the shutdown date (September 23) only to view balances, transaction history, and withdraw remaining assets.

Source: CryptoPotato