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TEXXR

Chronicles

The story behind the story

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Crypto exchange BitMEX says it will close on September 23 and tells users to withdraw assets; Trump pardoned its founders in 2025 for not implementing AML rules

Cryptocurrency exchange BitMEX said on Thursday that it will shut down its operations, effective September 23 …

Reuters Akanksha Khushi

Context & Ripple Effects

BitMEX’s closure follows its 2024 guilty plea over inadequate anti-money-laundering controls, after reporting earlier in 2025 indicated the exchange was seeking a buyer. The founders’ 2025 pardons did not prevent the platform itself from winding down.

The story also fits a related pattern of exchange retrenchment: Bittrex previously ended its US operations and told customers to withdraw funds, while CommEX later planned to close its website after taking over Binance’s Russian operations.

First-order effects

  • BitMEX customers must navigate the shutdown timetable and move or otherwise arrange their holdings as exchange operations cease; BitMEX says those assets are safe.
  • BitMEX loses its operating exchange business, ending an effort that had remained under the shadow of its AML compliance case despite the founders’ pardons.

Second-order effects

  • Rival exchanges and custody providers can compete for displaced BitMEX customers and trading activity, while users may put greater weight on operational continuity and compliance controls when selecting a venue.
  • The closure reinforces the commercial cost of AML failures for exchange operators: resolving founder-level legal exposure does not by itself preserve a platform’s business prospects.

Third-order effects

  • If similar exits continue, crypto trading may concentrate further among venues able to sustain compliance, custody and wind-down obligations, raising the value of regulatory infrastructure as a competitive capability.
  • The pattern points to a market in which exchange viability is judged not only by trading products but also by whether customers can reliably move and safeguard assets during regulatory or business disruptions.

The trend: Crypto exchange competition is increasingly shaped by compliance durability and orderly customer-asset handling, not just market access and trading volume.

Discussion

  • BitMEX Blog BitMEX Blog on x
    IMPORTANT MESSAGE FROM BITMEX
  • @ag_dwf @ag_dwf on x
    BitMEX was the first crypto futures exchange that we started trading on. It gave us believe that the market is inefficient and it makes sense to spend efforts on it Bye bye legend, it was a pure and wild fun, we will never forget that times!
  • @ogdfarmer @ogdfarmer on x
    “a flawless track record of 0 customer funds lost to hacks” The rest of you lot trounced by the woodchipper and spat out by the overload error: rest in piss. Daddy needs a new rari. GG bitmex, even with the inevitable tinge of nostalgia, you won't be missed.
  • @bitmex @bitmex on x
    Dear BitMEX Users, Today, we share with a very heavy heart that BitMEX exchange will shut …
  • @benbybit Ben Zhou on x
    BitMEX pioneered the perpetual swap and became the world's #1 crypto exchange. …
  • @ki_young_ju Ki Young Ju on x
    BitMEX recorded $84M in BTC futures volume yesterday, representing 0.08% of the market. It was a great exchange that helped shape the industry, and now it is passing the torch to the next generation of exchanges it inspired. [image]
  • @gainzy222 @gainzy222 on x
    well, u sorta ruined my life but u also led to the biggest character building arc thanks for the memories
  • @0xg00gly @0xg00gly on x
    Wow, end of an era. This means that they can capture the reminder of the insurance fund & excess assets: currently c.$300m. It is probably the main reason behind the wind down. Thank you for the perps, massive product innovation, and the memories.
  • @chimpfone @chimpfone on x
    This really hits hard... a lot of the newer gen don't know how monumental this is. …
  • @bittexxbt @bittexxbt on x
    the 10/10 inventor is retiring [image]
  • @stacy_muur Stacy Muur on x
    We'll never forget you, Bitmex. [image]
  • @cobie @cobie on x
    The world you grew up in no longer exists [image]
  • @cz_binance @cz_binance on x
    Sad to see BitMex go.  Some thoughts: BitMex pioneered 100x perps in crypto back in 2014. …