BitMEX is closing. Customers have until Sept. 23 to withdraw. The shutdown signals market consolidation as crypto prices fall and lawmakers debate the Clarity Act.
Alpha Score of 35 reflects weak overall profile with weak momentum, weak value, poor quality, moderate sentiment.
BitMEX, the crypto derivatives exchange that introduced 100x leverage perpetual swaps, is shutting down. The company stopped accepting new registrations and told customers to withdraw funds before Sept. 23, it said in a statement Thursday.
The decision followed a strategic review of the business and the broader crypto industry, the board of HDR Global Trading Limited, BitMEX's owner, said. "This comes with a heavy heart for all of us at the company and has not been taken lightly," the board said.
Launched in 2014, BitMEX once dominated crypto derivatives trading. Its market share has since fallen below 0.01%. Thomas Probst, a research analyst at Kaiko, told Reuters the closure would have limited effect on the broader market. The exchange's retreat shows a market where major platforms like Binance and Coinbase have gained weight at the expense of smaller competitors.
The shutdown adds to a stretch of turbulence for Bitcoin. Bitcoin has given up most of its gains from last year. The sector has also faced regulatory scrutiny. BitMEX's founders pleaded guilty in 2022 to failing to set up adequate anti-money-laundering controls. They were pardoned by President Donald Trump last year. Trump had championed digital assets on the campaign trail, and prices rallied after his return to office. The rally has since faded.
Lawmakers are still debating crypto legislation. On Wednesday, Senator Cynthia Lummis released an amended draft of the Clarity Act that would ban federal officials from issuing or sponsoring digital assets. The bill faces resistance from Senate Democrats who have raised ethics concerns and cited Trump's involvement with crypto ventures.
The BitMEX announcement arrived the same week that SecondFi, a crypto wallet provider, said it would close after a $2.4 million hack. BitMEX noted it has never lost funds to a hack in its 11-year operating history.
Customers have until Sept. 23 to retrieve their assets.
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