BitMEX is dead. The exchange that invented the perpetual swap, the futures contract that never expires and once offered up to 100x leverage, stopped trading at 04:00 UTC Wednesday. Trading, deposits and new positions are gone. The company’s message to users was blunt: get your money out.
“Your funds remain completely safe,” BitMEX wrote on X, urging customers to withdraw remaining balances as soon as possible. Deposits are no longer credited, and users shouldn’t send funds to BitMEX addresses. The company also warned of phishing scams promising faster withdrawals, a familiar warning in an industry full of them.
But the exit comes with a catch. Verified users who leave balances behind now pay 1% a year or $50, whichever is greater, charged monthly. BitMEX has said that fee will rise over time. Security measures, including KYC refreshes and cooldown periods, are rolling out in stages.
Wind-Down Timeline
BitMEX’s shutdown was not sudden. The company announced a two-month wind-down in July, and the exchange followed the plan step by step.
On Aug. 26, BitMEX barred new positions. New sign-ups were halted immediately. The exchange began force-closing open trades, and Wednesday marked the end of all exchange operations.
The closure follows a strategic review of the business and the broader industry, according to owner HDR Global Trading. That review is the stated reason for the shutdown.
The timeline runs from announcement through final close:
- July: Two-month wind-down announced
- Aug. 26: New positions barred; new sign-ups halted
- Wednesday: All exchange operations cease
What the Perpetual Swap Was
BitMEX was founded in 2014, and it changed crypto trading. The perpetual swap, or perp, is a futures contract with no expiry date. It lets traders hold a position indefinitely, and it offered up to 100x leverage — meaning a small bet could control a very large exposure.
BitMEX calls it crypto’s most traded product. The exchange also boasts that it never lost user funds to a hack.
That record held for years. Then the legal trouble arrived.
The 2024 Guilty Plea
In 2024, BitMEX pleaded guilty to Bank Secrecy Act violations. The company paid $100 million in penalties.
The Pardon
In March 2025, President Donald Trump pardoned BitMEX’s three co-founders: Arthur Hayes, Ben Delo and Samuel Reed.
The company they built is winding down, and the co-founders are no longer facing the consequences of the guilty plea.
Withdrawal Fee Details
The withdrawal fee is the most striking part of the shutdown. Verified users who complete KYC identity checks now face a 1% annual charge, or $50, whichever is greater. That fee is charged monthly, and BitMEX has said it will rise over time.
The fee applies to verified users who have completed KYC checks. The company has said the fee will rise over time.
For users with significant balances, the math works against them. Leaving money on BitMEX costs more than taking it off.
Security Measures Rolling Out
BitMEX is rolling out security measures in stages. KYC refreshes and cooldown periods are part of the plan. The company has warned of phishing scams promising faster withdrawals.
Users should be cautious about any communication claiming to help them move funds quickly. The official advice is simple: log in, check your balance, and withdraw what you want.
Key Facts Box
- Shutdown: 04:00 UTC Wednesday
- Wind-down announced: July
- New positions barred: Aug. 26
- Guilty plea: 2024
- Penalties: $100 million
- Pardon: March 2025
- Withdrawal fee: 1% a year or $50, whichever is greater, charged monthly
- Fee direction: Set to rise over time
What Happens Next
The exchange is closed, and the aftermath includes the withdrawal fee. The fee structure means some users will pay to keep their money on BitMEX. For others, the cost of moving will outweigh the benefit of staying.
The company’s warning about phishing scams is worth heeding. Scammers often target users during shutdowns, offering fake paths to faster withdrawals. The official advice is simple: log in, check your balance, and withdraw what you want.
BitMEX was a pioneer. It gave crypto traders a tool that changed the game. But the company’s legal troubles caught up with it, and the shutdown is the end of a long road.
The exchange that invented the perpetual swap is no more. The people who built it are free. And the users who trusted it are left with a bill.
The question is what happens next. Will users move their funds? Will the fee structure drive them away? The answers will determine whether BitMEX’s legacy is remembered as a breakthrough or a cautionary tale.
Source material: “Crypto Exchange That Invented 100x Leverage Is No More: Here’s What BitMEX Users Need to Know,” Decrypt.
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