The exchange has immediately stopped all new account registrations following a strategic business review by the parent company, HDR Global Trading Limited. The settlement ends an 11-year run for the Seychelles-incorporated venue, which debuted in 2014 and pioneered the basic plumbing for modern digital asset derivatives trading.
The settlement forces an immediate reduction of risk across the system, as while standard trading will continue for the next few weeks, the platform will apply strict limits on August 26 to prevent users from opening new positions. Between this date and the last September deadline, operators will systematically force close all remaining open contracts to ensure an orderly market shutdown.
The biggest challenge BitMEX faces is how to deram user assets to fiat currencies of their choice, as network congestion on the Bitcoin blockchain can 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-linked venue, which maintained a clean security record and lost no user funds to hacks or smart contract exploitation despite years of intense regulatory enforcement actions by global authorities.
The news comes just three weeks after BitMEX lost its CEO, CFO and chief growth officer.
