BitMEX reportedly spent two years seeking a buyer before deciding to close the crypto derivatives exchange, as founder control, declining activity and legal baggage deterred potential acquirers.
Summary
- BitMEX discussed a sale with multiple prospective buyers, including competing exchanges and Exodus.
- Founder control, shrinking revenue and reputation concerns reportedly complicated the negotiations.
- The exchange was reportedly seeking a valuation of about $1 billion during the process.
- BitMEX will restrict trading on Aug. 26 and close the exchange on Sept. 23.
BitMEX held sale talks for two years
BitMEX explored a sale with several potential acquirers over approximately two years but failed to secure an agreement, CoinDesk reported, citing a person familiar with the private discussions.
Potential buyers included rival cryptocurrency exchanges and payment and wallet company Exodus.
Broadhaven Capital Partners reportedly advised the Seychelles-based exchange during the process. crypto.news first reported BitMEX’s search for a buyer in February 2025, although the investment bank had reportedly joined the process in late 2024.
BitMEX was said to be seeking a valuation of approximately $1 billion. However, it remains unclear whether any interested company submitted a formal bid.
The reported sale attempt ended without a deal before BitMEX’s parent company, HDR Global Trading, completed a strategic review and approved the exchange’s closure.
Founder ownership reportedly complicated negotiations
BitMEX co-founders Arthur Hayes, Ben Delo and Samuel Reed left management after U.S. authorities filed criminal charges against them in 2020. Despite their departures, the three reportedly retained control of a large majority of the company’s equity.
According to CoinDesk’s source, the structure concerned at least one prospective buyer and made negotiations more difficult. Acquirers often reserve part of a transaction’s consideration for current managers, giving executives an incentive to remain with the business after a takeover.
That arrangement was harder to structure at BitMEX because the founders remained major owners without operating the exchange, the report said.
The company also experienced a management overhaul while its future remained uncertain. crypto.news previously reported that BitMEX replaced CEO Stephan Lutz with chief financial officer Ina Steiner, and growth chief Raphael Polansky also left. Former chief operating officer Peter Wilkinson subsequently became CEO.
Declining market share weakened buyer interest
BitMEX continued losing trading activity while the sale discussions were underway, limiting the valuation prospective buyers were willing to consider.
Monthly futures volume had exceeded $100 billion during parts of 2021 but declined to between $25 billion and $30 billion in late 2024, according to figures previously cited by The Block. CoinDesk’s source said the deteriorating business made buyers reluctant to pay the revenue multiple normally attached to a growing company.
Activity migrated to larger centralized exchanges and decentralized perpetual futures platforms. Hyperliquid recorded about $2.6 trillion in notional trading volume during 2025, nearly double Coinbase’s $1.4 trillion, according to Artemis data previously covered by crypto.news.
The shift carries added symbolism because BitMEX helped popularize perpetual swaps through its XBTUSD contract in 2016. The product allows leveraged positions without an expiry date and uses funding payments to keep contract prices close to the underlying spot market.
US legal history added reputational risk
BitMEX’s U.S. regulatory record reportedly presented another obstacle. The exchange pleaded guilty to violating the Bank Secrecy Act after authorities accused it of operating without an adequate anti-money laundering program. Its co-founders also pleaded guilty before receiving presidential pardons in 2025.
BitMEX now faces a proposed U.S. class action alleging that it profited from forced customer liquidations. As crypto.news reported, the plaintiffs are seeking the return of 622.66 BTC plus damages. The claims remain allegations and have not been proven in court.
BitMEX will move into reduce-only trading on Aug. 26, preventing users from opening new positions. The exchange will close on Sept. 23, ending an 11-year run. Customers have been asked to close positions and withdraw their assets before operations end.
Other Articles
No Comment! Be the first one.