Trading & Options · Profile from Trading and Options Research Companion
BitMEX
The offshore crypto derivatives exchange — run by HDR Global Trading Ltd. — that invented the instrument crypto now trades most. Arthur Hayes, Benjamin Delo and Samuel Reed founded BitMEX in or about 2014 (DOJ), and it operated from at least Nov 2014 (CFTC). On 13 May 2016 it launched XBTUSD, the first perpetual swap: a bitcoin future that never expires and is held near spot by funding payments every eight hours (Shared facts). Margined in bitcoin, offered with up to 100× leverage and backed by an insurance fund and auto-deleveraging, it became the template copied by Binance, FTX, Bybit, OKX, decentralised venues and in 2025 by CFTC-regulated US exchanges in "perpetual-style" form. BitMEX also became the case study for offshore venues serving US customers. On 1 Oct 2020 the CFTC sued and the Justice Department indicted the founders for operating an unregistered derivatives platform and wilfully failing to keep an anti-money-laundering programme — customers needed only an email address (DOJ). The entities paid $100m to the CFTC and FinCEN (Aug 2021); each founder paid $10m to the CFTC (May 2022) and was sentenced to probation (2022); HDR pleaded guilty (10 Jul 2024) and was fined $100m (15 Jan 2025). On 27 Mar 2025 President Trump pardoned Hayes, Delo, Reed, Gregory Dwyer and HDR itself (CNBC/Reuters, reported). Fourteen months later BitMEX lost its senior management, and on 23 Jul 2026 HDR announced that the exchange would close on 23 Sep 2026 after a "strategic review" (Cointelegraph). For a trader, BitMEX is the story of an instrument that outlived its inventor's venue.
At a glance
- Founded
- In or about 2014 by Arthur Hayes, Benjamin Delo and Samuel Reed; Gregory Dwyer first employee 2015 (DOJ release, 15 Jan 2025); operating from at least Nov 2014 (CFTC 8412-21)
- Founders (background)
- Hayes, formerly an equity derivatives trader at Deutsche Bank (2008–11) and a Delta One trader at Citi in Hong Kong until 2013; Delo, formerly a developer at JPMorgan; Reed, a web-platform developer (Wikipedia; Bloomberg — V4)
- Operator
- HDR Global Trading Ltd., with 100x Holding Ltd., ABS Global Trading Ltd., Shine Effort Inc Ltd. and HDR Global Services (Bermuda) Ltd. named in the CFTC order (CFTC 8412-21); HDR incorporated in the Seychelles (from memory, verify)
- Headquarters
- Hong Kong offices for most of its life, with offices in the US (DOJ says it "operated through U.S. offices"); later Seychelles/Bermuda entities (verify)
- Ownership / structure
- Private; founders the main owners (reported)
- Type (this KB)
- Crypto derivatives exchange (offshore); enforcement case; closed 2026. 8 moves
- Leadership
- Hayes CEO to Oct 2020; Vivien Khoo interim; Alexander Höptner CEO Jan 2021–25 Oct 2022; Stephan Lutz (CFO from May 2021) interim then CEO from Oct 2022 to Jun 2026; Peter Wilkinson (ex-general counsel and COO) CEO from Jun 2026 (The Block; Cointelegraph)
- Products
- XBTUSD and other coin-margined and stablecoin-margined perpetuals; quarterly futures; spot (from May 2022); BMEX token (from memory, verify)
- Leverage
- Up to 100× on XBTUSD (blueprint seed; section 12 — exact current limits by risk tier not checked)
- Enforcement
- CFTC complaint and DOJ indictment 1 Oct 2020; CFTC/FinCEN $100m (10 Aug 2021); founders' CFTC orders $10m each (5 May 2022); founders' and Dwyer's pleas and probation (2022); HDR plea 10 Jul 2024, $100m fine and two years' probation 15 Jan 2025; pardons 27 Mar 2025
8 strategic moves analysed
Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.
2014
Founding and Bitcoin Margined Derivatives
Founding / new product
2016
XBTUSD Perpetual Swap and Funding
New product / market-structure invention
2020
Black Thursday Outage and Liquidations
Leverage and risk design / market shock and outage response
2020
CFTC and DOJ Charges and Hayes Exit
Regulatory, enforcement or legal action (failure)
2021
CFTC FinCEN Settlement and Mandatory KYC
Settlement / compliance pivot
2022
Founder Pleas and the Beyond Derivatives Pivot
Regulatory, enforcement or legal action / strategy pivot (failure)
2025
Corporate Plea Fine and Pardons
Regulatory, enforcement or legal action
2026
Strategic Review and Closure
Closing the business