BitMEX, the exchange that invented 'perps,' is closing — what to do when a platform winds down

BitMEX, one of crypto's oldest derivatives exchanges and the venue that invented the perpetual swap, said it will shut down on September 23, 2026, and has already halted new sign-ups. The platform is urging users to close their positions and withdraw their funds well before the deadline.

Founded in 2014 by Arthur Hayes and two co-founders, BitMEX launched the perpetual swap in 2016 — a futures contract with no expiry date that offered up to 100x leverage. In plain terms, a “perp” lets a trader bet on a price going up or down using borrowed money, with no set end date; 100x leverage means a small move in the wrong direction can wipe out the whole position. The product spread across the industry, with crypto perpetuals trading a reported $61.7 trillion in 2025.

The wind-down runs on a schedule. Trading continues normally until August 26, after which users can only reduce existing positions; any left open will be force-closed before the September 23 cutoff. Users can still log in afterward to withdraw, though funds left parked will eventually attract a monthly fee. BitMEX said its proof-of-reserves shows customer assets exceed its liabilities, but warned that Bitcoin network congestion could slow withdrawals near the deadline.

The closure caps a long decline. BitMEX ceded the perps business it pioneered to nimbler centralized rivals and to decentralized venues like Hyperliquid, and centralized-exchange perpetual volume fell 10% to $12.7 trillion in the second quarter. The company also lost its CEO, CFO and head of growth last month. Its earlier history was rockier — it pleaded guilty to anti-money-laundering failures and paid $100 million, and its founders were later pardoned — but it noted it had gone more than 11 years without losing user funds to a hack.

The takeaway for beginners is a practical one: when any platform announces it is winding down, the safe move is to withdraw early rather than wait, because networks can clog and reviews can slow things down as a deadline approaches. Watch for phishing, too — BitMEX warned that it offers no “expedited withdrawal” service, and scammers routinely impersonate closing exchanges to steal funds. Use official channels only, and don't click links promising to speed things up.