BitMEX shutdown, withdrawals and accompanying legal fallout

BitMEX, a once-prominent crypto derivatives exchange, formally ceased exchange operations at 04:00 UTC on September 23, 2026, after more than 11 years in business. The owner and operator, HDR Global Trading Limited, said the closure followed a strategic review of the business and the broader crypto industry. BitMEX had announced the wind-down on July 23, stopped new account registrations then, and dismantled services in stages: major Bitcoin and Ethereum derivatives were settled on September 16, remaining spot pairs ceased trading on September 21, and the Convert service ended on September 22 at 04:00 UTC. The exchange removed its last trading products before the formal shutdown, leaving a reduced web interface to show balances, transaction histories and withdrawal pages rather than trading functionality.

Although trading and deposits are no longer allowed, users can still log in and withdraw remaining balances via the BitMEX website. The platform urged customers to withdraw funds promptly, warning that deposits sent after the closure time may not be credited and could be unrecoverable. API access will end with the closure, but API-initiated withdrawals remain available until 04:00 UTC on September 28; after that date institutional withdrawal connections such as Fireblocks and Copper will stop working and withdrawals must be processed through the web UI. BitMEX also announced it will remove multi-network withdrawal options for USDT, USDC and ETH, and from September 28 those assets will be withdrawable only on the Ethereum network. Verified accounts holding funds will face a monthly charge equivalent to an annualized rate of 1% or $50, whichever is higher, deducted from balances without making them negative; the exchange reserves the right to raise that fee with notice.

BitMEX stressed that customer assets remain fully backed and pointed to its proof-of-reserves and liabilities records, asserting no customer funds were lost to hacks over its operation. The shutdown followed unsuccessful efforts to sell the business after reportedly seeking a valuation near $1 billion; founder ownership stakes were cited as complicating potential transactions. Trading activity had declined from monthly futures volumes above $100 billion in parts of 2021 to roughly $25–$30 billion by late 2024, and third-party data cited minimal market share and daily volume when the closure was announced.

Legal matters remain salient as BitMEX closes. The company pleaded guilty to Bank Secrecy Act violations in January 2025 and paid a $100 million penalty; HDR Global Trading received two years of unsupervised probation. U.S. pardons later covered the founders and some executives. Civil claims continue: on September 12 the Celsius bankruptcy estate sued five BitMEX entities over liquidations during the March 2020 crash, seeking return of 6,360.17 Bitcoin — the complaint valued the amount at about $495 million — while other reports described the sought sum as nearly $490 million. A separate proposed class action filed in July accuses BitMEX of retaining 622.66 BTC that plaintiffs say should have been returned. The ultimate recovery and legal outcomes will depend on court findings.