BitMEX
{{short description|Cryptocurrency trading exchange}}
{{pp-semi|small=yes}}
{{Infobox company
| name = BitMEX
| logo = Bitmex logo.png
| foundation = 2014
| founders = Arthur Hayes, Ben Delo, and Samuel Reed
| location_country = Seychelles
| products = Cryptocurrency exchange
| homepage = {{Official URL}}
}}
BitMEX is a cryptocurrency exchange and derivative trading platform. It is owned and operated by HDR Global Trading Limited, which is registered in the Seychelles.{{cite web|title=Company Overview of HDR Global Trading Limited|url=https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=309314412|website=Bloomberg|access-date=17 Oct 2018|archive-date=13 October 2018|archive-url=https://web.archive.org/web/20181013053851/https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=309314412|url-status=dead}}{{cite web|title=About BitMEX|url=https://www.bitmex.com/app/aboutUs|website=BitMEX|access-date=16 Nov 2018|archive-date=4 December 2021|archive-url=https://web.archive.org/web/20211204161831/https://www.bitmex.com/app/aboutUs|url-status=live}}
BitMEX offers a variety of cryptocurrency-based financial products, including perpetual contracts, futures contracts, and options contracts. These products allow traders to bet on the price movements of cryptocurrencies like Bitcoin, Ethereum, and others, without actually owning the underlying assets.
History
BitMEX was founded in 2014 by Arthur Hayes,{{cite news |title=The rise and fall of bitcoin billionaire Arthur Hayes |url=https://www.vanityfair.com/news/2021/02/the-rise-and-fall-of-bitcoin-billionaire-arthur-hayes |last=Ciralsky |first=Adam |work=Vanity Fair |date=February 4, 2021 |accessdate=6 February 2021 |archive-date=4 August 2021 |archive-url=https://web.archive.org/web/20210804020749/https://www.vanityfair.com/news/2021/02/the-rise-and-fall-of-bitcoin-billionaire-arthur-hayes |url-status=live }} Ben Delo, and Samuel Reed, with financing from family and friends.{{cite web|title=Bored With Banking, This Former Citi Trader Went Full Crypto|url=https://www.bloomberg.com/news/features/2018-02-01/bored-with-banking-this-former-citi-trader-went-full-crypto|date=January 31, 2018|website=Bloomberg|last1=Robinson|first1=Edward|last2=Vaghela|first2=Viren|access-date=17 Oct 2018|archive-date=2022-03-20|archive-url=https://web.archive.org/web/20220320101438/https://www.bloomberg.com/news/features/2018-02-01/bored-with-banking-this-former-citi-trader-went-full-crypto|url-status=live}}
Bitmex completed a SAFE round of investment in July 2015 then shortly after was inducted into SOSV batch 8 china accelerator program where it sold equity in exchange for labour and financing.{{citation needed |date=March 2025}}
In 2016, the exchange introduced perpetual futures, which became its most popular derivative product.{{cite journal |last1=Alexander |first1=C |last2=Choi |first2=J |last3=Park |first3=H |last4=Sohn |first4=S |title=BitMEX Bitcoin Derivatives: Price Discovery, Informational Efficiency and Hedging Effectiveness |date=2020 |journal=Journal of Futures Markets |volume=40 |issue=1 |pages=23–43 |doi=10.1002/fut.22050 |ssrn=3353583 |s2cid=216370312 |url=http://sro.sussex.ac.uk/id/eprint/85380/1/BitMEX_PriceDiscovery_Body2.pdf |archive-date=2022-12-10 |access-date=2021-09-27 |archive-url=https://web.archive.org/web/20221210132341/http://sro.sussex.ac.uk/id/eprint/85380/1/BitMEX_PriceDiscovery_Body2.pdf |url-status=live }}
{{cite journal |last1=Alexander |first1=C |last2=Choi |first2=J |last3=Massie |first3=HRA |last4=Sohn |first4=S |title=Price Discovery and Microstructure in Ether Spot and Derivative Markets |date=2020 |journal=International Review of Financial Analysis |volume=71 |pages=101506 |doi=10.1016/j.irfa.2020.101506 |ssrn=3511533 |s2cid=219791961 |url=http://sro.sussex.ac.uk/id/eprint/90585/1/Ether_Microstructure_AcceptedVersion.pdf |archive-date=2023-01-14 |access-date=2022-02-13 |archive-url=https://web.archive.org/web/20230114093006/http://sro.sussex.ac.uk/id/eprint/90585/1/Ether_Microstructure_AcceptedVersion.pdf |url-status=live }} In 2018, Delo became the United Kingdom's first billionaire from bitcoin, and its youngest self-made billionaire.{{cite news|title=Where's Wallet? Can you spot Ben Delo, the UK's first bitcoin billionaire?|url=https://www.thetimes.com/business-money/technology/article/wheres-wallet-can-you-spot-ben-delo-the-uks-first-bitcoin-billionaire-llp2fk2rt|website=The Times|date=1 Jul 2018|last=Urwin|first=Rosamund|access-date=17 Oct 2018|archive-date=14 January 2023|archive-url=https://web.archive.org/web/20230114221614/https://www.thetimes.co.uk/article/wheres-wallet-can-you-spot-ben-delo-the-uks-first-bitcoin-billionaire-llp2fk2rt|url-status=live}}
In July 2019, Nouriel Roubini, a critic of cryptocurrencies, suggested that the exchange is involved in illegal activities, allowing traders to take on too much risk and by trading against clients.{{cite news |title=Nouriel Roubini Ramps Up Campaign Against Crypto Exchange BitMEX |url=https://www.bloomberg.com/news/articles/2019-07-17/nouriel-roubini-ramps-up-campaign-against-crypto-exchange-bitmex |newspaper=Bloomberg.com |date=17 July 2019 |access-date=19 July 2019 |archive-date=21 April 2021 |archive-url=https://web.archive.org/web/20210421102037/https://www.bloomberg.com/news/articles/2019-07-17/nouriel-roubini-ramps-up-campaign-against-crypto-exchange-bitmex |url-status=live }} Two days later, it was reported by Bloomberg that the Commodity Futures Trading Commission (CFTC) was investigating BitMEX as to whether they broke rules by allowing Americans to trade on the platform.{{cite news |title=U.S. Regulator Probing Crypto Exchange BitMEX Over Client Trades |url=https://www.bloomberg.com/news/articles/2019-07-19/u-s-regulator-probing-crypto-exchange-bitmex-over-client-trades |website=Bloomberg News |date=19 July 2019 |access-date=19 July 2019 |archive-date=10 February 2022 |archive-url=https://web.archive.org/web/20220210191234/https://www.bloomberg.com/news/articles/2019-07-19/u-s-regulator-probing-crypto-exchange-bitmex-over-client-trades |url-status=live }}
On October 1, 2020, Hayes, Reed, Delo, and Gregory Dwyer were indicted on charges of violating the U.S. Bank Secrecy Act and conspiracy to violate that law, arising from allegations that the four failed to implement anti-money laundering measures.{{Cite news|last=Stempel|first=Jonathan|date=2020-10-01|title=U.S. charges BitMEX cryptocurrency founders with failing to prevent money laundering|language=en|work=Reuters|location=New York|url=https://www.reuters.com/article/us-usa-crime-bitmex-idUSKBN26M6SE|url-status=live|access-date=2020-10-01|archive-url=https://web.archive.org/web/20201001192448/https://www.reuters.com/article/us-usa-crime-bitmex/u-s-charges-bitmex-cryptocurrency-founders-with-failing-to-prevent-money-laundering-idUSKBN26M6SE|archive-date=2020-10-01}}{{Cite news |last=Popper |first=Nathaniel |date=2020-10-01 |title=Owners of BitMEX, a Leading Bitcoin Exchange, Face Criminal Charges |language=en-US |work=The New York Times |url=https://www.nytimes.com/2020/10/01/technology/bitmex-bitcoin-criminal-charges.html |access-date=2020-10-06 |issn=0362-4331 |archive-date=2020-10-06 |archive-url=https://web.archive.org/web/20201006023413/https://www.nytimes.com/2020/10/01/technology/bitmex-bitcoin-criminal-charges.html |url-status=live }} The case name is "U.S. v. Hayes et al", case number of 20-cr-00500, in the U.S. District Court for the Southern District of New York.
On April 6, 2021, former BitMEX CEO Arthur Hayes turned himself in to face U.S. charges for violating the Bank Secrecy Act.{{cite web|url=https://www.justice.gov/usao-sdny/press-release/file/1323316/download|title=Violation of the Bank Secrecy Act|publisher=Department of Justice|date=October 1, 2020|access-date=April 13, 2021|archive-date=October 5, 2021|archive-url=https://web.archive.org/web/20211005084220/https://www.justice.gov/usao-sdny/press-release/file/1323316/download|url-status=live}} He was released on $10 million bond pending future court proceedings in New York.{{cite news |url=https://www.bloomberg.com/news/articles/2021-04-06/former-bitmex-ceo-arthur-hayes-surrenders-to-face-u-s-charges |title=Former BitMEX CEO Arthur Hayes Surrenders to Face Charges |work=Bloomberg |date=2021-04-07 |accessdate=2021-04-07 |archive-date=2021-04-06 |archive-url=https://web.archive.org/web/20210406212516/https://www.bloomberg.com/news/articles/2021-04-06/former-bitmex-ceo-arthur-hayes-surrenders-to-face-u-s-charges |url-status=live }}{{Cite magazine|url = https://www.vanityfair.com/news/2021/02/the-rise-and-fall-of-bitcoin-billionaire-arthur-hayes|title = The Rise and Fall of Bitcoin Billionaire Arthur Hayes|magazine = Vanity Fair|date = 4 February 2021|issue = April|last1 = Ciralsky|first1 = Adam|access-date = 6 February 2021|archive-date = 4 August 2021|archive-url = https://web.archive.org/web/20210804020749/https://www.vanityfair.com/news/2021/02/the-rise-and-fall-of-bitcoin-billionaire-arthur-hayes|url-status = live}}
On February 24, 2022, Delo and Hayes pled guilty to violating the Bank Secrecy Act by willfully failing to establish, implement, and maintain an anti-money laundering program at BitMEX. The pair agreed to separately pay a $10 million criminal fine representing pecuniary gain derived from the offense.{{cite web |title=Founders Of Cryptocurrency Exchange Plead Guilty To Bank Secrecy Act Violations |url=https://www.justice.gov/usao-sdny/pr/founders-cryptocurrency-exchange-plead-guilty-bank-secrecy-act-violations |website=www.justice.gov |access-date=27 February 2022 |language=en |date=24 February 2022 |archive-date=14 January 2023 |archive-url=https://web.archive.org/web/20230114211545/https://www.justice.gov/usao-sdny/pr/founders-cryptocurrency-exchange-plead-guilty-bank-secrecy-act-violations |url-status=live }}
On March 9, 2022, Reed pleaded guilty to violating the Bank Secrecy Act and agreed to pay a $10 million criminal fine. Reed was sentenced by U.S. District Court Judge John George Koeltl in New York to probation along with the other co-founders.{{cite web |last1=Stempel|first1=Jonathan |title=New guilty plea in BitMEX crypto exchange laundering case |url=https://www.reuters.com/technology/new-guilty-plea-bitmex-crypto-exchange-laundering-case-2022-08-08/ |website=Reuters |access-date=6 November 2023 |language=en |date=8 August 2022}}{{cite web |title=Third Founder Of Cryptocurrency Exchange Pleads Guilty To Bank Secrecy Act Violations |url=https://www.justice.gov/usao-sdny/pr/third-founder-cryptocurrency-exchange-pleads-guilty-bank-secrecy-act-violations |website=www.justice.gov |access-date=20 May 2022 |language=en |date=9 March 2022 |archive-date=14 January 2023 |archive-url=https://web.archive.org/web/20230114093001/https://www.justice.gov/usao-sdny/pr/third-founder-cryptocurrency-exchange-pleads-guilty-bank-secrecy-act-violations |url-status=live }} Gregory Dwyer’s trial was initially scheduled for October 2022, and subsequently pled guilty and received a 12 month probation and $150,000 fine as punishment.{{cite web |last1=Sun|first1=Menqi |title=Top Employee of Crypto Exchange BitMEX Sentenced Over U.S. Charge |url=https://www.wsj.com/articles/top-employee-of-crypto-exchange-bitmex-sentenced-over-u-s-charge-11668716287 |website=WSJ |access-date=6 November 2023 |language=en |date=28 December 2021}}{{cite web |last1=Danckert |first1=Sarah |title=Aussie crypto mogul gets break in criminal case |url=https://www.smh.com.au/business/markets/aussie-crypto-mogul-gets-break-in-criminal-case-20211228-p59kga.html |website=The Sydney Morning Herald |access-date=27 February 2022 |language=en |date=28 December 2021}}
On May 20, 2022, Hayes was sentenced to two years' probation, with home confinement for six months.{{cite web |last1=Dolmetsch |first1=Chris |title=BitMEX Co-Founder Arthur Hayes Sentenced to Two Years' Probation |url=https://www.bloomberg.com/news/articles/2022-05-20/bitmex-co-founder-arthur-hayes-sentenced-to-two-years-probation |website=Bloomberg.com |access-date=20 May 2022 |language=en |date=20 May 2022}}
On June 15, 2022, Delo was sentenced to 30 months' probation and as a UK citizen returned to Hong Kong subsequently to serve his probation.{{cite web |last1=Vanderford |first1=Richard |title=BitMEX Co-Founder Sentenced to Probation on U.S. Compliance Charge |url=https://www.wsj.com/articles/bitmex-co-founder-sentenced-to-probation-on-u-s-compliance-charge-11655339914 |website=Wall Street Journal |access-date=16 June 2022 |date=16 June 2022 |archive-date=14 January 2023 |archive-url=https://web.archive.org/web/20230114093006/https://www.wsj.com/articles/bitmex-co-founder-sentenced-to-probation-on-u-s-compliance-charge-11655339914 |url-status=live }}
In July 2024, BitMex pleaded guilty to violating the Bank Secrecy Act due to failing to maintain an adequate anti-money laundering program.{{Cite news |last=Vanderford |first=Richard |date=July 10, 2024 |title=BitMEX Pleads Guilty to U.S. Charge Over Anti-Money-Laundering Failure |url=https://www.wsj.com/articles/bitmex-pleads-guilty-to-u-s-charge-over-anti-money-laundering-failure-f2e80811 |url-access=subscription |access-date=July 11, 2024 |work=The Wall Street Journal}} On January 15, 2025, the company was fined $100 million.{{Cite news |title=BitMEX fined $100 million by US judge for anti-money laundering violations |url=https://www.reuters.com/technology/us-says-bitmex-fined-100-million-violating-bank-secrecy-act-2025-01-15/ |archive-url=http://web.archive.org/web/20250117115818/https://www.reuters.com/technology/us-says-bitmex-fined-100-million-violating-bank-secrecy-act-2025-01-15/ |archive-date=2025-01-17 |access-date=2025-05-04 |work=Reuters |language=en-US}}
In March 2025, President Trump issued four federal pardons to individuals associated with BitMEX, and one to the exchange itself. This is the first time a pardon has been granted to a corporation rather than a natural person.{{cite web |url=https://thehill.com/opinion/criminal-justice/5224229-trump-makes-history-by-pardoning-a-corporation/ |title=Trump makes history by pardoning a corporation |publisher=The Hill |date=April 1, 2025 |access-date=April 1, 2025}}
References
{{reflist}}
External links
- {{Official website}}
{{Cryptocurrency exchanges}}
Category:Companies of Seychelles