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The exchange has immediately halted all new account registrations following a strategic business review by its parent company, HDR Global Trading Limited. The wind-down ends an 11-year run for the Seychelles-incorporated venue, which debuted in 2014 and pioneered the foundational plumbing for modern digital asset derivatives trading.
The wind-down forces an immediate reduction of risk across the system, because while standard trading will continue for the next few weeks, the platform will apply strict limits on Aug. 26 to stop users from opening any new positions. Between that date and the final September deadline, operators will systematically force close all remaining open contracts to ensure the market shuts down in an orderly manner.
The main challenge BitMEX faces is how user assets are transferred, as network congestion on the Bitcoin blockchain could cause significant withdrawal delays. However, the company’s current proof of reserves indicates that platform liabilities fully cover customer assets.
This exit marks the end of an 11-year run for the digital asset derivatives venue, which maintained a clean security record and lost no user funds to hacks or smart-contract exploits despite facing years of intense regulatory enforcement actions by global authorities.
The news comes just three weeks after BitMEX lost its CEO, chief financial officer and head of growth.