BitMEX Ends Crypto Trading but Keeps Withdrawals Open Following Closure
Crypto derivatives exchange BitMEX ended all trading operations at 4:00 UTC on Wednesday, two months after announcing its planned shutdown after over 11 years of service. The platform no longer permits trading or deposits but still allows users to log in and withdraw remaining balances via its website. As part of the phased closure, API withdrawals will be disabled on September 28, requiring users to perform withdrawals through the web platform. BitMEX emphasized that the closure results from a strategic business decision, unrelated to legal or regulatory issues.
Cessation of Trading Operations and Access Limitations
BitMEX fully halted its trading platform operations at 4:00 UTC on Wednesday. From that moment, users cannot execute trades or make deposits on the exchange. However, account access remains available for owners to withdraw any remaining balances. This was confirmed in an official statement published on BitMEX's X account.
The phased shutdown plan includes disabling API withdrawal functionality on September 28. After that date, users will only be able to withdraw funds through the web interface.
Fund Security and Reasons Behind Closure
BitMEX assured its customers that their funds remain secure and urged timely withdrawal of balances. The company reiterated that its owner and operator, HDR Global Trading Limited, decided to close the exchange after conducting a strategic business review and assessing the broader crypto industry environment.
The company emphasized that the closure was not driven by legal or regulatory issues. This is significant given the regulatory pressures BitMEX has faced historically.
BitMEX History and Closure Context
Founded in 2014, BitMEX became a major player in the crypto derivatives market. It helped popularize perpetual swaps with leverage up to 100x, attracting a large customer base.
The closure announcement came on July 23, with operations scheduled to cease on September 23. The decision was influenced by a strategic reassessment amid ongoing changes in the crypto industry.
Connection to Celsius Bankruptcy Lawsuit
The decision to shut down occurred shortly after the Celsius bankruptcy estate filed a lawsuit against five BitMEX-linked entities. The estate alleged fraud, market manipulation, and wrongful liquidations involving approximately 6,360 BTC during the market downturn in March 2020.
The lawsuit claims the value of the bitcoin involved is nearly $490 million based on current prices. While this legal context draws attention to BitMEX's closure, the company officially denies any linkage between the shutdown and the lawsuit.
Why it matters
The news of BitMEX ceasing trading marks the end of one of the most influential crypto derivatives platforms with over 11 years of operation. While trading stops, the company maintains user access to funds, thereby reducing potential risks during closure. The strategic nature of the shutdown, not linked to regulatory pressure, highlights a shift in the company’s business focus amid evolving industry dynamics. The connection to the Celsius lawsuit adds a noteworthy legal background that draws public and investor attention.
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