CZ Says BitMEX Couldn't Survive Biden's 'War on Crypto' After Shutdown Decision
Summary
- HDR Global Trading said it would end BitMEX operations at the end of September.
- Zhao said BitMEX had a major impact on the market by first introducing 100x leveraged perpetual futures.
- Zhao emphasized that BitMEX was unable to survive amid the Biden administration's 'war on crypto'.
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Binance founder Changpeng Zhao, known as CZ, expressed regret over the closure of global crypto derivatives exchange BitMEX.
In a post on X on July 23, Zhao wrote that it was sad to see BitMEX "fade into history." Earlier that day, BitMEX operator HDR Global Trading announced it would stop operating the exchange at the end of September.
Zhao said BitMEX was the first crypto platform to introduce 100x leveraged perpetual futures in 2014. Before that, expiring futures dominated the market, making Fridays especially chaotic.
At the time, users could deposit only Bitcoin and just one blockchain was supported. Withdrawals were processed only once a day through a multisignature wallet. Zhao added that while those limits were inconvenient, they ultimately helped prevent hacks.
He also said all four BitMEX co-founders pleaded guilty to violating the U.S. Bank Secrecy Act after 18 months of legal proceedings, one month before trial. Each was fined $10 million and placed under house arrest, while none received a prison sentence.
"But amid the Biden administration's so-called 'war on crypto,' BitMEX's business could not survive," Zhao wrote.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul