Analyst: Bitcoin has seen notable pullbacks in every prior U.S. midterm election cycle, and its key support level of $73,000 requires close attention.
Crypto analyst Ali Charts wrote in a post that as the November 3 US midterm elections approach, investors may overlook the recurring Bitcoin pullbacks seen in previous election cycles. He believes this election could again bring significant volatility, with downside risks worth noting, and his key support level to watch is $73,000. According to his statistics, Bitcoin saw pullbacks of 72%, 65%, 52%, and 27% during the US midterm election cycles in 2010, 2014, 2018, and 2022 respectively. However, he emphasized that correlation does not equal causation; the elections themselves may not be the cause of the drops, and these pullbacks are also influenced by Bitcoin’s overall market cycle, liquidity conditions, and investor sentiment.
Q4 returns show a similar pattern: Bitcoin fell 16.70%, 42.16%, and 14.75% in Q4 of 2014, 2018, and 2022 respectively. The only exception was 2010, when it rose 391%—though Bitcoin was still in its early stages back then. As a result, three of the past four midterm election years saw negative Q4 returns.
Regarding future price action, Ali Charts noted that the $73,000 level is near the average acquisition cost of Bitcoin’s current short-term holders, making it a key area to monitor the positioning of recent investors. He pointed out that in an established bull market, Bitcoin often finds support near the short-term holder average cost after a significant pullback. He believes that if selling pressure accelerates after the November 3 elections, pushing Bitcoin back toward $73,000, this zone will be a critical level to test whether buyers are still willing to uphold the overall bullish trend. If prices rebound sustainably from this area, it will reinforce the bullish thesis. For trading, he will wait for signs of selling pressure drying up and demand reemerging before considering opening long positions.
23 minutes ago
SpaceX’s $40 billion off-balance-sheet debt financing is facing pressure on pricing negotiations amid turmoil in the AI market.
According to Bloomberg, citing people familiar with the matter, SpaceX is negotiating a $40 billion off-balance-sheet debt financing plan, which would use a special purpose vehicle (SPV) to purchase Nvidia chips to support its AI business expansion. The structure is designed to keep the related liabilities off SpaceX’s balance sheet, preserving its investment-grade credit rating. However, recent turmoil in the AI sector has pushed up industry borrowing costs, complicating pricing negotiations. Banks led by Goldman Sachs are discussing the plan with investors led by Apollo; Apollo-backed Atlas SP would manage the entity, with Pimco also considering participation.
Previously, yields on some subordinated debt were discussed in the mid-8% to 9% range, but recent volatility has prompted investors to reevaluate pricing, and the two sides remain in talks. SpaceX’s financial filings this week also revealed that last year, xAI had attempted to raise up to $20 billion in off-balance-sheet debt via a sale-leaseback arrangement with Valor Equity Partners. Auditors classified the deal as a “failed sale-leaseback arrangement”, leading SpaceX to eventually record roughly $13 billion of the sum as its own debt. The proposed structure aims to avoid a repeat of that outcome.
23 minutes ago
South Korean stock market's retail war chest shrank by 36.5%; retail investors continued net buying, but capital replenishment has slowed.
Data from Korea Financial Investment Association shows that as of October 22, investor deposits at South Korean securities firms fell to 88.68 trillion won, a drop of around 51 trillion won from the all-time high of 139.69 trillion won recorded on June 4, representing a 36.5% decline and returning to levels seen at the start of the year. The balance dipped below 90 trillion won on October 21, marking the first such drop in nearly nine months.
Investor deposits refer to funds held in securities firm accounts that have not yet been used to purchase assets such as stocks, and are typically viewed as potential buying power. The decline in the balance can stem from either stock purchases or fund withdrawals, so the full drop cannot be equated to capital exiting the stock market.
Retail investors continue to make net purchases. Between June 4 and October 23, individual investors bought a net 44.17 trillion won in the KOSPI market and 3.15 trillion won in the KOSDAQ market, while net purchases of ETFs over the same period reached 28.25 trillion won. The report notes that unlike the first half of the year, where new capital inflows exceeded stock purchases, the pace of capital replenishment in the second half has lagged behind outflows, leading to the continuous decline in deposit balances.
The KOSPI index closed at 5550.30 points on October 23, having fallen nearly 20% over the past month. A securities industry official said the recent decline is indeed excessive relative to earnings fundamentals, but the AI sector, which previously drove gains, still faces credit risk concerns, making it too early to expect a sustained rebound.
23 minutes ago
Renowned Trader: Bitcoin Should Add Positions Instead of Panicking When It Hits $80,000 'Buy Zone'
Renowned crypto trader Doctor Profit stated in a post that every time Bitcoin hits its "buy zone", it is an opportune moment to add to existing long positions, and he is currently executing this strategy. His accompanying chart labels the area near $80,000 as the "buy zone", emphasizing: "This zone is for buying, not panicking."
23 minutes ago
AI computing power expansion in the Gulf region faces communication risks due to Iran's threats to attack undersea fiber-optic cables.
Two senior Iranian security officials have revealed that Iran has drawn up plans to strike submarine communications cables in the Gulf if the U.S. and Israel launch another attack; one official added that they will also block repairs to extend the communication outage. Officials from Iran’s Islamic Revolutionary Guard Corps (IRGC) had previously threatened to target seven major undersea internet cables beneath the Strait of Hormuz if Iran’s infrastructure is attacked. These threats have introduced new communication risks to cloud computing and AI infrastructure in the Gulf region. Reuters reported that past attacks by Iran hit two Amazon Web Services (AWS) facilities in the United Arab Emirates (UAE) and damaged infrastructure near an AWS facility in Bahrain. Analysts noted that simultaneous damage to multiple cables could disrupt financial transactions, e-commerce, and cloud services, though the actual impact depends on traffic rerouting capabilities and backup line capacity. International bandwidth passing through the Strait of Hormuz accounts for less than 1% of the global total, so the direct impact on global communications may be limited. Microsoft plans to invest over $10 billion in the UAE, Saudi Arabia, Qatar, and Kuwait by 2030, and allocate more than $400 million to improve submarine and terrestrial network connections in the Middle East, to enhance the resilience of its digital infrastructure.
23 minutes ago
This week, U.S. spot Bitcoin ETFs recorded net inflows of $301.2 million, with BlackRock’s IBIT alone attracting $565.7 million in inflows.
According to Farside's monitoring, net inflows into U.S. spot Bitcoin ETFs totaled $301.2 million this week. The breakdown is as follows: BlackRock’s IBIT saw a net inflow of $565.7 million; FBTC recorded a net outflow of $116.6 million; BITB posted a net outflow of $18.5 million; ARKB had a net outflow of $99.6 million; EZBC notched a net inflow of $7.3 million; MSBT saw a net inflow of $6.5 million; GBTC registered a net outflow of $51.8 million; and BTC recorded a net inflow of $8.2 million.
BitMEX founder Arthur Hayes announced in a post that Flop Labs' testnet and airdrop are set to launch in the coming weeks. He specifically warned that no FLOP token currently exists, and anyone claiming the token is already available is a scammer.
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
Upbit official announcement: Due to BitMEX terminating access to the travel rule solution VerifyVASP, Upbit will suspend digital asset deposits and withdrawals of 1 million KRW or more between the two exchanges starting October 16. Deposits under 1 million KRW will remain supported as normal. Manual deposits of 1 million KRW or more from BitMEX to Upbit will be discontinued from 14:00 on December 18. Any such assets received after that will enter a refund process, and users must retrieve them in accordance with the refund procedure.
XRP Whale Deposits 1.669 Billion XRP Into Binance Over Past 30 Days, Hitting a 7-Month High.
According to Cryptoquant data, the cumulative inflow of XRP whales into Binance over the past 30 days has climbed to 1.669 billion tokens, marking a 7-month high and surpassing the roughly 1.65 billion figure recorded in September. This signals a renewed uptick in large holders’ activity of transferring XRP to crypto trading platforms. Increased inflows from whales could boost XRP’s tradable supply on these platforms; if large holders opt to sell, it may intensify market selling pressure. That said, capital inflow does not automatically point to an imminent sell-off—it may also stem from wallet rebalancing or utilization of other Binance trading services. This metric alone is insufficient to determine XRP’s future price trajectory; further analysis combining net flow, trading volume, and price movements is required.
7 minutes ago
Bitcoin falls below $81,000, driven by higher-than-expected inflation and intensified selling of AI stocks.
According to HTX market data, Bitcoin briefly rallied to nearly $84,000 on Wednesday before a sustained pullback, falling to around $80,400 by early Thursday, marking a 2.6% 24-hour drop and approaching last Thursday’s low of roughly $80,430. The U.S. September core inflation rate rose to 2.6%, exceeding the market expectation of 2.5%, further stoking Federal Reserve interest rate hike bets. Meanwhile, selling pressure on AI stocks intensified, with Nasdaq 100 Index futures down 1.2%. Data disclosed by Anthropic to potential investors shows its third-quarter revenue grew by $16.8 billion, a figure reflecting a slowdown in growth momentum. The crypto market weakened in tandem: ZEC dropped 11% to around $1,100, while ETH fell 5% to roughly $2,370. U.S. spot Bitcoin ETFs recorded a net outflow of approximately $261 million on Wednesday. Analysts noted that if Bitcoin closes below $80,400 on a daily basis, it will lose the key level that buyers have defended twice since last Thursday.
7 minutes ago
OpenAI has launched anti-espionage training, using honey traps as a case study, and bans employees from wearing clothing bearing the company’s logo outside the workplace.
Beating AI News Flash: OpenAI has included "honey traps" in its internal security training to prevent employees from leaking trade secrets. The Wall Street Journal reported that the company once shared a spy story with staff: a foreign intelligence agency tried to seduce a U.S. diplomat stationed in Russia. It first sent a blonde woman with champagne to knock on the diplomat’s hotel door, which was rejected; then switched to a red-haired woman, and finally even dispatched a young man. OpenAI used this case to remind employees that spies may exploit romantic and intimate relationships to approach targets and gather confidential information. The company also teaches staff to watch out for casual small talk in daily life. Another training example involves a stranger who often appeared at a San Francisco playground with a child, gradually built a rapport with an OpenAI employee, and then probed for work-related details during chats. The company even requires employees to avoid wearing clothes with the OpenAI logo in public, apply privacy screens to their laptops on the subway, and wipe whiteboards clean after meetings to prevent cleaning staff from accessing sensitive information. These trainings were rolled out long before the wiretapping case was exposed this week. On October 13, the U.S. Department of Justice disclosed that an OpenAI engineer was arrested by the FBI on suspicion of installing recording devices in an executive meeting room. Anthropic and Google also conduct similar anti-spy training.
7 minutes ago
Anthropic adds runtime tracing to Claude API: Users can now track where agents get stuck and where tokens are consumed.
Beating AI Express News: Anthropic has launched the public beta of OpenTelemetry tracing for its Claude Platform. Agents can now chain model calls, data searches, and tool executions, allowing developers to track runtime logs to view each call’s duration, error points, and token usage. This eliminates the need to piece together execution flows from disparate service logs, making it easier to identify bottlenecks that slow down tasks or drive up costs.
The most notable update is native API support. While Claude Code and Cowork already had similar monitoring capabilities, the Messages API and cloud-hosted Agents can now directly send runtime logs to platforms including Grafana, Datadog, and Langfuse. Administrators only need to configure the receiving endpoint in the Claude Console, without modifying individual existing API calls.
However, tools run by developers themselves still require supplementary tracing records via SDKs or other methods. By default, the system only exports metadata such as duration, status, and token usage. Enabling the Full content feature also logs prompts, model responses, and tool inputs/outputs for error review, but this data is sent to external monitoring platforms, requiring enterprises to separately manage access permissions for sensitive data.
7 minutes ago
PaperTrade's product launch progress is hindered by X platform's restrictions on website link sharing.
PaperTrade co-founder jez stated in a post that the X platform has restricted links to the PaperTrade website, slowing down the team’s planned product launch. The issue has persisted for three days; the team added that they have applied for services including X Gold, but the problem remains unresolved, and they are seeking external assistance.
7 minutes ago
OKX will launch the DNAUSDT perpetual contract on October 16.
OKX announced that it will officially launch the DNAUSDT perpetual contract on October 16 at 20:00 (UTC+8) across its web platform, mobile app, and API. DNA, whose full name is Neosoul, is a project focused on agent trading, dedicated to building infrastructure for the "agent economy". The exchange noted that token and product availability may vary by region, with details subject to platform display.
A legal dispute in the UK questions the legality of certain crypto derivatives operations. A British engineer claims 324.8 bitcoins, valued at approximately 26.5 million dollars as of October 14, 2026, after more than a thousand losing trades. He believes the platform did not have the necessary authorization to offer these financial products to British clients. This case could also involve other traders who carried out similar operations between 2018 and 2022 on the BitMEX platform.
In brief A British trader claims 324.8 BTC, approximately 26.5 million dollars, from BitMEX. His lawsuit concerns 1,053 losing trades made between 2018 and 2022. He accuses the platform of offering crypto derivatives without regulatory authorization in the UK. BitMEX contests the meaning of the complaint, while the outcome could interest other British traders. A British trader claims 324.8 BTC after four years of losses Lewis Barber, a computer engineer from Chelford, Cheshire, reportedly initiated a proceeding before the High Court of London. He targets HDR Global Trading Limited, the Seychelles-registered company owning BitMEX. According to information reported by The Guardian and The Mirror, he contests the legality of his derivatives operations carried out between 2018 and 2022.
During this period, the trader reportedly used five accounts to carry out approximately 2,294 transactions. However, his refund claim concerns only 1,053 trades that resulted in losses. All were on perpetual swaps, contracts that allow speculation on cryptocurrency prices with no fixed expiration. These instruments hold an important place in the crypto derivatives market.
The claimed amount reaches 324.8 BTC, approximately 26.5 million dollars according to the valuation indicated on October 14, 2026. Lewis Barber demands either the recovery of his original bitcoins or equivalent damages. His action therefore does not simply aim to contest the outcome of his investments. It seeks to establish whether the platform could legally offer these financial products to him in the UK.
BitMEX facing British financial rules and the FCA warning At the heart of the case is the UK Financial Services and Markets Act 2000, known as FSMA. Lewis Barber argues that the platform was conducting regulated financial activities without the necessary authorization from the Financial Conduct Authority (FCA). According to his argument, this lack of authorization could render the disputed contracts unenforceable against him.
His lawyers also advance several grounds, including deceit, negligent misstatements, and mistake. They assert that the company presented itself as legally authorized to offer these operations. To support this view, they recall that the FCA had issued a warning on March 3, 2020. The UK regulator then indicated that the platform operated without authorization and targeted consumers in the country.
The complaint also references international advertising campaigns, including an announcement published in The Times newspaper in January 2019. In December 2025, representatives of Lewis Barber from the firm Seladore Legal had already requested the annulment of the concerned transactions. Gareth Keillor, partner at the firm, also noted that other British traders may have entered into similar contracts. However, their ability to obtain redress will depend on their situation and the circumstances of each case.
A contested procedure and possible consequences for traders Despite the filing of the complaint, a procedural point remains important: the procedure had not yet been officially served to the targeted company. A BitMEX spokesperson told Daniel Boffey, editor-in-chief of the Guardian, that HDR Global Trading Limited had not yet received any complaint of this nature. However, this statement does not address the substance of the legal dispute.
The case comes after the closure of BitMEX trading activities, announced for September 23, 2026, as part of a strategic review and an orderly liquidation. Withdrawals remained possible nonetheless. Founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed, the company helped popularize perpetual swaps before facing regulatory difficulties in the United States.
At this stage, Lewis Barber’s accusations remain unexamined, and the court has not announced a hearing date. The High Court’s decision could clarify the consequences of the lack of regulatory authorization on certain financial contracts offered to British clients.
If the court supports the interpretation defended by the plaintiff, other traders might consider similar actions. Otherwise, their possibilities for recourse will depend notably on the legal grounds retained and the facts specific to each situation.
The dispute between Lewis Barber and BitMEX thus raises a central question for the UK cryptocurrency market: can losses from old trades lead to restitution when the legality of contracts is challenged? The answer will depend on the judicial examination, which will have to determine the scope of applicable financial rules and any platform liabilities.
Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Join the program
A
A
Lien copié
Ghiles A.
Journaliste et rédacteur web passionné par l’univers des cryptomonnaies et des technologies Web3. J’y traite les dernières tendances et actualités afin de proposer un contenu de haute qualité à un large public du secteur.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
According to monitoring by Onchain Lens, BitMEX co-founder Arthur Hayes purchased approximately $888,000 worth of crypto assets through FalconX and Flowdesk, including 546,600 AERO tokens valued at around $459,800, 120,000 PENDLE tokens worth roughly $231,600, and 3 million ZAMA tokens valued at approximately $196,700.
A British software engineer, Lewis Barber, has filed a lawsuit against HDR Global Trading, the operator of BitMEX, in London’s High Court, demanding the return of 324.8 bitcoin—valued at approximately $27.2 million. Barber accuses the shuttered crypto derivatives exchange of selling him perpetual swap derivatives in the UK without authorization from the Financial Conduct Authority (FCA).
Alleged unauthorized trading and legal basisBarber reportedly conducted 2,294 trades on BitMEX across five accounts from 2018 to 2022. Of those, 1,053 trades resulted in losses, all involving perpetual swaps, which function like futures contracts but have no expiry date. He contends that these transactions fall under regulated activity as defined by the Financial Services and Markets Act 2000, making BitMEX’s offerings unlawful in the UK since the company lacked FCA approval.
In December 2025, Barber’s legal team wrote to BitMEX seeking to rescind the trades and requesting repayment of losses. Barber argues that, because of the lack of UK authorization, the contracts are unenforceable and he is entitled to recover the funds lost on these trades.
He further claims BitMEX was aware it did not have the proper licensing in the UK but still indicated that trading was legitimate for UK users.
Barber asserts that without FCA approval, the derivatives contracts he entered into with BitMEX cannot be legally enforced against him, and thus seeks repayment of the bitcoin lost in these trades.
The 324.8 bitcoin that Barber seeks to reclaim was valued at £20.4 million on October 1, with the amount rising to around $27.2 million according to the rates cited in court filings.
BitMEX’s UK operations and marketing reachBarber’s claim also highlights BitMEX’s active marketing efforts targeting UK users, including global campaigns, allowing UK residents to register on the platform, and promoting itself with an advertisement in a major UK newspaper in January 2019. The FCA issued a public warning in March 2020, specifically stating that BitMEX was not authorized, and cautioning that users would have no access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if they traded on the platform.
Further legal challenges and platform closureBitMEX halted trading on September 23, 2026, marking the end of more than 11 years in business. Its parent entity, the Seychelles-based HDR Global, attributed the shutdown to its inability to secure a buyer the previous year. Verified users with remaining assets on BitMEX now face possible fees of $50 per month or 1% annually, whichever is greater, for unclaimed account balances.
Beyond the London lawsuit, BitMEX faces additional legal pressures. In New York, the platform stands accused of operating a secret “Insider Trading Desk” intended to trade against clients and deliberately freezing servers during high volatility to trigger liquidations. In July, BKX Services and David Namdar initiated a proposed class action, claiming losses of 623 bitcoin and seeking compensation for the alleged misconduct. BitMEX disputes the allegations.
Regulatory scrutiny and industry parallelsBitMEX’s co-founder Ben Delo has recently made headlines in the UK due to large donations totaling £36 million to the Reform UK political party. Delo, Arthur Hayes, and Samuel Reed pleaded guilty in 2022 to violating the U.S. Bank Secrecy Act by failing to implement suitable anti-money laundering measures. The trio avoided imprisonment and received pardons from President Trump in March 2025. BitMEX itself pleaded guilty to similar charges in 2024 and paid $100 million to the U.S. Department of Justice in January 2025.
The current lawsuit against HDR Global Trading shares similarities with a recent case filed in June 2026, where nearly 1,700 investors sued Binance and its former CEO Changpeng Zhao for the unauthorized sale of derivatives in the UK, seeking more than £150 million in compensation.
Given the regulatory and legal complexity surrounding derivatives trading, monitoring live market developments is critical for market participants. In such a fast-moving environment, where a single Federal Reserve decision or rapid altcoin listing can alter trading dynamics within seconds, investors are seeking efficiency to avoid friction across multiple platforms. Many traders now consolidate their activities with privacy-focused tools like CryptoAppsy, which offer real-time charts, automated price alerts, specific news for each coin, and essential macroeconomic data—all in one place, and without requiring users to create an account.
In brief
UK software engineer Lewis Barber is suing the operator of BitMEX, the crypto derivatives exchange that shut down in September, in London's Commercial Court.
Barber wants 324.8 BTC returned, alleging BitMEX traded with him without authorization from the Financial Conduct Authority, the UK's financial regulator.
His lawyers say other UK traders may have similar claims, which could run to hundreds of millions of pounds in total.
A British software engineer is suing the operator of crypto derivatives exchange BitMEX for the return of 324.8 BTC, alleging it traded with him in the UK without regulatory approval, according to The Guardian and particulars of claim reviewed by Decrypt.
The Bitcoin was worth £20.4 million on October 1, the claim says, or about $27.2 million by Decrypt's calculation using the claim's exchange rates.
Lewis Barber, who brought the claim against BitMEX operator HDR Global Trading, entered into around 2,294 trades on the exchange between 2018 and 2022 from five accounts, the claim says. It challenges the 1,053 that lost him money.
All of them were perpetual swaps, a derivative similar to a futures contract but with no expiry date. Each trade was a regulated activity that BitMEX was not authorized to carry out in the UK, the claim argues, so none can be enforced against Barber under the Financial Services and Markets Act 2000.
Myriad: When will Bitcoin hit a new all-time high? Click to make your prediction.The claim says BitMEX did not restrict access from the UK, let new users select it as their country of residence, and ran promotional campaigns worldwide, including an advertisement in The Times in January 2019. It also cites a March 2020 warning from the FCA that BitMEX may have been trading regulated investments in the UK without authorization.
Barber also claims damages for deceit, alleging BitMEX knew it was not authorized when it implicitly represented that it could lawfully trade with him. His solicitors wrote to BitMEX rescinding the trades in December 2025, the claim says.
The claim has been filed but not yet formally served on BitMEX, the Guardian reported. "No such claim has been served on HDR Global Trading Limited," a BitMEX spokesperson told the newspaper.
BitMEX also faces a proposed class action in New York alleging theft of Bitcoin and insider trading, which names co-founders Ben Delo, Arthur Hayes and Samuel Reed.
The three co-founders pleaded guilty in 2022 to violating the Bank Secrecy Act through anti-money laundering failures at the exchange, and were pardoned by President Donald Trump in March 2025. BitMEX itself pleaded guilty to Bank Secrecy Act violations in 2024 and was ordered to pay $100 million in January 2025.
BitMEX in the UKBitMEX shut down on September 23, having announced in July that it would close.
Delo gave Reform UK £36 million in September, the largest single donation in British political history, Decrypt reported.
Many other investors are likely to be in a similar position to Barber, his law firm Seladore Legal said in a statement shared with Decrypt, putting the potential total at hundreds of millions of pounds.
"Other UK-based persons may have entered into similar contracts with BitMEX, although whether any individual has a claim will depend on the particular facts and trading history," said Gareth Keillor, a partner at the firm.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
In brief UK software engineer Lewis Barber is suing the operator of BitMEX, the crypto derivatives exchange that shut down in September, in London's Commercial Court. Barber wants 324.8 BTC returned, alleging BitMEX traded with him without authorization from the Financial Conduct Authority, the UK's financial regulator. His lawyers say other UK traders may have similar claims, which could run to hundreds of millions of pounds in total. A British software engineer is suing the operator of crypto derivatives exchange BitMEX for the return of 324.8 BTC, alleging it traded with him in the UK without regulatory approval, according to The Guardian and particulars of claim reviewed by Decrypt.
The Bitcoin was worth £20.4 million on October 1, the claim says, or about $27.2 million by Decrypt's calculation using the claim's exchange rates.
Lewis Barber, who brought the claim against BitMEX operator HDR Global Trading, entered into around 2,294 trades on the exchange between 2018 and 2022 from five accounts, the claim says. It challenges the 1,053 that lost him money.
All of them were perpetual swaps, a derivative similar to a futures contract but with no expiry date. Each trade was a regulated activity that BitMEX was not authorized to carry out in the UK, the claim argues, so none can be enforced against Barber under the Financial Services and Markets Act 2000.
Myriad: When will Bitcoin hit a new all-time high? Click to make your prediction.The claim says BitMEX did not restrict access from the UK, let new users select it as their country of residence, and ran promotional campaigns worldwide, including an advertisement in The Times in January 2019. It also cites a March 2020 warning from the FCA that BitMEX may have been trading regulated investments in the UK without authorization.
Barber also claims damages for deceit, alleging BitMEX knew it was not authorized when it implicitly represented that it could lawfully trade with him. His solicitors wrote to BitMEX rescinding the trades in December 2025, the claim says.
The claim has been filed but not yet formally served on BitMEX, the Guardian reported. "No such claim has been served on HDR Global Trading Limited," a BitMEX spokesperson told the newspaper.
BitMEX also faces a proposed class action in New York alleging theft of Bitcoin and insider trading, which names co-founders Ben Delo, Arthur Hayes and Samuel Reed.
The three co-founders pleaded guilty in 2022 to violating the Bank Secrecy Act through anti-money laundering failures at the exchange, and were pardoned by President Donald Trump in March 2025. BitMEX itself pleaded guilty to Bank Secrecy Act violations in 2024 and was ordered to pay $100 million in January 2025.
BitMEX in the UKBitMEX shut down on September 23, having announced in July that it would close.
Delo gave Reform UK £36 million in September, the largest single donation in British political history, Decrypt reported.
Many other investors are likely to be in a similar position to Barber, his law firm Seladore Legal said in a statement shared with Decrypt, putting the potential total at hundreds of millions of pounds.
"Other UK-based persons may have entered into similar contracts with BitMEX, although whether any individual has a claim will depend on the particular facts and trading history," said Gareth Keillor, a partner at the firm.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
A UK software engineer has filed a claim in London’s High Court against HDR Global Trading Limited, the company that operated BitMEX. He wants back roughly £20 million worth of Bitcoin, a sum pegged at about $27 million.
His argument is not that he traded badly. It is that he should never have been allowed to trade at all, and that the law therefore entitles him to his losses back.
The claim, in detail The claimant is Lewis Barber. His case targets 1,053 perpetual swap trades that lost money, all placed on BitMEX between 2018 and 2022.
The core of Barber’s case rests on the Financial Services and Markets Act 2000. He alleges that BitMEX carried out regulated investment activity in the UK without authorization from the Financial Conduct Authority.
If that is true, his lawyers argue, the contracts are void. A void contract is treated as though it never legally existed, which would entitle Barber to restitution for what he lost.
The claim also frames the trades as mis-sold. It goes further still, accusing the exchange of deceit.
Why the timing is awkward for BitMEX The filing lands shortly after BitMEX stopped trading. The exchange ceased operations on September 23, 2026, following a strategic review by its board.
Barber’s case is one of several legal challenges now aimed at the firm, including claims tied to allegedly improper liquidations.
The case remains at an early stage. BitMEX has yet to receive formal notice of the claim, so no response from the company has entered the record.
Barber’s legal team is not framing this as a one-off dispute. They say a win could open the door to similar claims from other UK users.
By their estimate, that could expose BitMEX to liabilities running into the hundreds of millions of pounds. That figure is the claimant side’s projection, not a finding by any court.
The regulatory backstory BitMEX and UK regulators are not strangers. The exchange received a warning notice from the FCA back in March 2020, an episode that forms part of the backdrop to Barber’s case.
One name conspicuously absent from the defendant list is Ben Delo. The BitMEX co-founder, who is a notable donor to the political party Reform UK, is not named in the claim.
The suit is aimed squarely at the corporate operator, HDR Global Trading Limited.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.
A software engineer in the United Kingdom has filed a lawsuit against HDR Global Trading, the operator of the now-defunct crypto derivatives exchange BitMEX, seeking the return of 324.8 BTC. The case, brought by Lewis Barber in London’s Commercial Court, centers on allegations that BitMEX entered into trades with him without the necessary authorization from the UK Financial Conduct Authority (FCA).
Exchange operations and regulatory questionsBarber’s claim states that between 2018 and 2022, he executed approximately 2,294 trades on BitMEX from five separate accounts, focusing on perpetual swaps, a type of crypto derivative. Out of these transactions, 1,053 resulted in losses. The claim argues that each of these transactions constituted a regulated activity that required FCA approval, which BitMEX allegedly lacked.
According to the particulars of the claim, as of October 1, the Bitcoin in question was valued at £20.4 million, equivalent to about $27.2 million. Barber’s legal team contends that these contracts are unenforceable under the Financial Services and Markets Act 2000 due to BitMEX’s lack of regulatory status in the UK.
The claim further notes BitMEX’s active approach to UK users, including allowing new sign-ups to select the UK as their residence and running international promotional campaigns. This included an advertisement in The Times in January 2019. It cites an FCA warning from March 2020 suggesting BitMEX may have operated without authorization in the UK market.
Barber is also pursuing damages for deceit, arguing that BitMEX implicitly misrepresented its legal standing. His solicitors notified BitMEX of the intent to rescind the trades in December 2025, according to the legal filing.
Barber’s lawyers believe that other UK traders who interacted with BitMEX under similar circumstances could have comparable claims, with potential liability running to hundreds of millions of pounds.
The legal action has been filed but not yet formally served on BitMEX. A spokesperson for HDR Global Trading said there has been no service of the claim on the company.
Further legal challenges and political linksBitMEX faces other legal troubles, including a proposed class action in New York alleging Bitcoin theft and insider trading. This suit names the exchange’s co-founders, Arthur Hayes, Ben Delo, and Samuel Reed.
All three co-founders admitted to Bank Secrecy Act violations in 2022, specifically for failing to implement an adequate anti-money laundering program. BitMEX itself pleaded guilty to similar violations in 2024 and was ordered to pay a $100 million penalty in January 2025.
In March 2025, President Donald Trump issued pardons for Hayes, Delo, and Reed. CNBC reported that each co-founder agreed to pay a $10 million fine as part of the settlement. Hayes publicly acknowledged the pardon on X.
Gareth Keillor, a partner at Seladore Legal, highlighted that additional UK-based individuals may have similar claims against BitMEX, though the validity of each would depend on particular trading histories and facts.
Separately, Ben Delo made headlines by donating £36 million to Reform UK, marking the largest single political donation in British history.
BitMEX winds down operationsBitMEX officially ceased its exchange services on September 23, following an announcement in July detailing its planned closure. The company confirmed the conclusion of all trading activity at 04:00 UTC on a Wednesday, after a two-month wind-down period.
While users can still access their accounts and withdraw funds, the exchange is no longer accepting new deposits or trade positions. BitMEX has stated that all customer funds are secure, encouraging users to remove any remaining balances as soon as possible.
In the context of ongoing legal and regulatory uncertainties, the case has underscored the significance of minimizing operational risks and closely monitoring changes in the crypto industry. In a market where a single Fed decision or a sudden altcoin listing can change everything in seconds, jumping between different apps for charts, news, and portfolio tracking is costing investors money. Smart traders are now utilizing privacy-first tools like CryptoAppsy to consolidate everything. Without even the hassle of creating an account, users gain access to real-time charts, smart price alerts, coin-specific news, and essential macro data all in one place.
Cryptocurrency exchange BitMEX has been named in a £20 million lawsuit filed by British software engineer Lewis Barber, who alleges the company offered unauthorized derivatives trading to UK customers between 2018 and 2022.
Summary
BitMEX faces a £20 million lawsuit from British software engineer Lewis Barber over cryptocurrency trading losses.
Barber alleges BitMEX offered regulated derivatives without authorization from Britain’s Financial Conduct Authority during trading activities.
The claim seeks Bitcoin lost between 2018 and 2022, relying on UK financial services legislation.
BitMEX said the legal claim had not been served on its operating company, HDR Global.
U.S. authorities fined BitMEX $100 million in January 2025 after its earlier Bank Secrecy Act conviction.
The Guardian reported on October 14 that Barber had filed the claim at London’s High Court against HDR Global Trading Limited, the Seychelles-based operator of BitMEX. Barber is seeking the return of Bitcoin he says he lost while trading cryptocurrency derivatives, or compensation of equivalent value. The claim had not been formally served on the company when the allegations became public.
BitMEX faces questions over unauthorized UK trading
Barber’s lawsuit centers on cryptocurrency derivatives, financial contracts that allow investors to speculate on price movements without directly owning the underlying assets. The products often involve leverage, which increases potential gains and losses.
Through his trading activity on BitMEX, Barber alleges he lost Bitcoin worth approximately £20 million between 2018 and 2022. His lawyers argue that the exchange lacked the necessary Financial Conduct Authority authorization to provide the disputed investment services to UK customers.
The claim relies on the Financial Services and Markets Act 2000, particularly provisions dealing with agreements entered into by companies conducting regulated activities without the required permissions.
The legislation provides that certain agreements involving unauthorized regulated activities may be unenforceable. Under specified conditions, affected customers can seek the return of money or property transferred through such agreements.
Barber’s lawyers contend that the provisions apply to his cryptocurrency trades. The court has not decided whether BitMEX breached the applicable rules or whether the investor is entitled to recover his losses.
The disputed transactions involved leveraged cryptocurrency derivatives and perpetual futures, products that allow traders to take positions using borrowed exposure. Such contracts can produce substantial losses when prices move against leveraged positions.
Investor says BitMEX promoted its products in Britain
The lawsuit includes allegations concerning how BitMEX marketed its trading services to potential customers.
Barber’s lawyers claim the exchange conducted promotional campaigns internationally without excluding the United Kingdom. The filing specifically refers to an advertisement published in The Times on January 3, 2019.
The legal team argues that the company’s promotional activities supported its efforts to attract customers in Britain, despite allegedly lacking the regulatory permissions required for certain derivatives products.
The statement of claim refers to an FCA warning issued around March 3, 2020. According to the reported filing, the regulator warned that BitMEX might have been conducting regulated investment activities in the UK without authorization.
Barber’s lawyers maintain that the transactions were therefore subject to the remedies available under British financial services legislation. However, the FCA warning cited in the lawsuit is not itself a court finding that the disputed contracts were unlawful.
Gareth Keillor, a partner at Seladore Legal representing Barber, said the case concerns cryptocurrency trading losses accumulated over several years.
“This is a substantial claim concerning losses sustained by Lewis over a number of years,” Keillor said.
He explained that Barber’s position is that BitMEX entered into the disputed transactions without the authorization required under UK law. The investor is consequently seeking the Bitcoin he lost or equivalent damages.
Keillor suggested that other UK customers may have entered similar agreements with the platform, although the merits of any separate claims would depend on individual trading records and circumstances.
BitMEX says the £20 million claim has not been served
The legal action became public weeks after BitMEX ended its cryptocurrency exchange operations.
The Seychelles-based platform voluntarily closed on September 23, 2026, following a strategic review of its business. The closure ended its trading services but did not prevent legal claims from being filed against its operating company.
Barber named HDR Global Trading Limited as the defendant in the High Court proceedings.
Responding to the reported lawsuit, a BitMEX spokesperson said, “No such claim has been served on HDR Global Trading Limited.”
The statement addressed the formal service of the claim and did not provide a detailed response to the allegations concerning UK regulatory authorization.
Filing proceedings and formally serving them on a defendant are separate legal steps. Service ordinarily gives the defendant notice of the case and an opportunity to respond within the applicable court timetable.
No defense filing, hearing date or judgment in Barber’s case was identified in the October 14 report.
Barber’s lawyers suggested that the proceedings could have consequences for other former customers who traded similar products through BitMEX.
Keillor said other UK residents may have entered comparable contracts, but he cautioned that any potential recovery would depend on the particular facts and trading history.
The legal team suggested that liabilities could reach hundreds of millions of pounds if additional investors brought successful claims. The estimate represents a possible scenario raised by Barber’s lawyers, not an established liability or damages award.
BitMEX has faced previous legal action in the U.S.
The latest case follows earlier enforcement proceedings against BitMEX and its founders in the United States.
In July 2024, HDR Global Trading Limited pleaded guilty to violating the Bank Secrecy Act after federal prosecutors accused the exchange operator of failing to maintain an adequate anti-money-laundering program.
The U.S. Department of Justice confirmed the guilty plea, stating that the company failed to establish sufficient customer identification and compliance procedures while conducting cryptocurrency derivatives business.
Prosecutors said the exchange allowed customers to open accounts using limited identifying information during part of the period covered by the investigation.
In January 2025, the Justice Department announced that BitMEX had been fined $100 million for the Bank Secrecy Act offense.
The sentence followed the company’s guilty plea and included a two-year probation period.
BitMEX founders Arthur Hayes, Ben Delo and Samuel Reed had previously pleaded guilty to related Bank Secrecy Act charges in 2022. They received financial penalties and sentences that did not require imprisonment.
President Donald Trump pardoned the three founders in March 2025.
The earlier U.S. proceedings concerned anti-money-laundering compliance and customer identification requirements. Barber’s lawsuit concerns a separate question involving the authorization needed to offer certain financial products in Britain.
Meanwhile, BitMEX has faced another civil action in New York, where investors accused the exchange of Bitcoin theft and insider trading. The company has denied those allegations.
Ben Delo, one of the exchange’s founders, has separately attracted attention in British politics after making a £36 million donation to Reform UK. Delo said the contribution was intended to support what he described as fair political competition.
Barber’s High Court claim seeks the return of Bitcoin allegedly lost through trading between 2018 and 2022, or equivalent damages. As of the October 14 report, BitMEX maintained that the proceedings had not been formally served on HDR Global Trading Limited.
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
Arthur Hayes says Flop Labs will ship the FLOP testnet within weeks. The 90-day trial is the only route to the project’s genesis airdrop, so miners, validators, and AI agents must earn their share.
Yet Flop Labs’ own testnet page sets no launch date. Instead, it ties the start to readiness criteria and allows an extension if the team misses them.
What Happens on the Testnet? What a great @token2049. I got some youthful energy with cellular medicine from @VeritaHealthHQ and then dropped the thinking behind @flop_labs all week. Now it’s back on the grid so we can ship FLOP Testnet in a few weeks.
Yachtzee
— Arthur Hayes (@CryptoHayes) October 11, 2026 Hayes, the BitMEX co-founder who left retirement to lead Flop Labs in August, posted the update after TOKEN2049 Singapore.
The startup is building a blockchain where AI agents rent computing power. Agents would pay in FLOP whenever they need a model to answer a request or storage for their data.
The miners here are GPU owners. These are people or data centers with graphics processing units (GPUs), the chips that also run AI models like ChatGPT.
Bitcoin miners spend electricity guessing numbers to secure their network, and that work has no other use. By contrast, Flop’s proof-of-useful-inference model pays miners for real AI tasks.
In return, miners earn block rewards plus most of the inference fees. Validators, meanwhile, confirm that the work actually happened. Hayes first sketched the idea in his creation-style FLOP pitch.
The testnet rehearses that market with worthless test tokens. Miners earn credit only for verified compute, so idle hardware scores nothing.
Validators compete for 1,000 mainnet seats based on their testnet ranking. Agents, in contrast, must actually spend faucet tokens on inference, because holding them earns nothing.
Why Hayes Thinks FLOP Could Outgrow BitcoinFLOP borrows heavily from Bitcoin’s design. Blocks arrive about every second, and each one pays 96 FLOP to miners.
That reward halves every 730 days, echoing the Bitcoin halving cycle at twice the pace. A September draft caps supply near 18.1 billion tokens after 10 years, with 24.3% reserved for the airdrop.
The project also skips the usual fundraising. It has no presale and no venture capital allocation, and Hayes says he funded the team himself.
Hayes goes further. He cites Reed’s Law, the idea that a network’s value soars as users form groups, to argue Flop could one day be worth more than Bitcoin.
However, no published model backs that claim. The Yellow Paper is still a draft at version 0.5.0, and the team flags many of its figures as provisional.
The FLOP testnet also launches into a crowded field. Render and Ocean Network already rent out idle GPUs for AI work.
Hayes expects the AI data center boom to overbuild and end in a bailout. Meanwhile, the FLOP testnet will show whether his own AI venture can draw real demand for compute.
U.S. pre-market crypto-related stocks rose broadly, with ABTC jumping nearly 5%.
According to market data from BIT (bit.com), U.S. pre-market crypto-related stocks rose broadly, with the following tickers posting gains: CRCL +1.67%, MSTR +1.68%, HOOD +0.99%, BMNR +2.79%, COIN +1.67%, ABTC +4.79%, BNC +0.76%.
2 minutes ago
KGEN surges past $0.16, rising more than 13% in 24 hours.
Per HTX market data, KGEN broke above $0.16, now trading at $0.16118, up 13.2% in the past 24 hours.
2 minutes ago
Hong Kong Exchanges and Clearing (HKEX) has partnered with S&P Dow Jones Indices to launch the S&P 500 HKEX Tech 100 Index.
The Hong Kong Exchanges and Clearing (HKEX) announced that it has collaborated with leading index provider S&P Dow Jones Indices to co-develop and launch the S&P 500 HKEX Tech 100 Index. This cross-market index combines leading U.S.-listed enterprises and the largest Hong Kong-listed technology companies by market capitalization, offering the market a new benchmark. The S&P 500 HKEX Tech 100 Index was launched on September 30, 2026, with the aim of enabling future ETFs tracking the index to qualify for inclusion in the Stock Connect trading scheme. It is designed to provide investment exposure to both U.S. and Hong Kong stock markets through a single benchmark, promoting portfolio diversification and cross-market capital flows.
2 minutes ago
Anatomy Open-Source: Turns Technical Principles Into Working Machines With Just One Sentence
Beating AI News: Developer Ryan has open-sourced an AI drawing tool called Anatomy, which currently supports Claude Code, OpenCode, and Codex. Users only need to describe the technical concept they want to explain in one sentence, and the AI will automatically design a machine that demonstrates the concept’s principle through moving parts. The generated works can also be operated via mouse or keyboard. For example, when explaining LRU cache (which prioritizes removing the least recently used data), the AI creates a bookshelf that can move books; when explaining how a mechanical watch works, it generates a mechanical device that can wind up, adjust speed, and disassemble gears. More complex works include SpaceX Starship’s Raptor rocket engine, which can be split into 11 components and simulate ignition. Currently, 33 major works are showcased on Anatomy’s official website. Anatomy first studies relevant principles and parameters, then designs parts, creates graphics, and adds animations. The movements and numerical readings in the scene are controlled by the same computational model, changing synchronously during operation. It also has built-in automated inspection tools to detect issues such as part interpenetration and occlusion errors. The final output is editable web code that can be opened independently or embedded into websites. The developer has also packaged existing works into a component library for direct use by developers. The project is open-sourced under the MIT License. However, creating detailed works takes significant time: the mechanical watch took nearly 2 hours to develop, while the Raptor rocket engine took over 10 hours. Its 3D functionality remains in the testing phase.
2 minutes ago
Kraken's parent company Payward has obtained full market approval from Dubai's VARA, and plans to enter the UAE market.
Kraken parent company and integrated financial infrastructure platform Payward announced today that it plans to officially enter the UAE market after securing full market approval from the Dubai Virtual Assets Regulatory Authority (VARA). The approval allows Payward to operate as a regulated Virtual Asset Service Provider (VASP), serving retail, professional, and institutional investors. Upon the official launch of services, Kraken users in the UAE will be able to trade spot and margin pairs priced in UAE Dirhams (AED), as well as deposit and withdraw funds directly in Dirhams. Users will also have access to on-chain staking, xStocks, and Krak for crypto asset transfers; institutional clients can utilize over-the-counter (OTC) spot trading services and Kraken Prime. Subject to regulatory approval, Payward expects to roll out additional products between late 2026 and 2027, including crypto derivatives and expanded yield opportunities. Additionally, Payward will open up its infrastructure to regional partners via embedded trading services.
OpenAI and Anthropic reported more than $80 billion in combined losses last year. Meanwhile, three companies supplying power and cooling to their AI data centers are seeing a business boom.
Unlike the AI giants, all three already trade on the New York Stock Exchange (NYSE).
Three NYSE Stocks Are Getting Paid by the AI BoomGE Vernova (GEV) supplies the turbines and equipment that power AI data centers. Its data center orders exceeded $5 billion in the first half of 2026, more than double its entire 2025 total.
Quanta Services (PWR) builds the power lines connecting those facilities to the grid. Its total backlog reached a record $53.4 billion, including work beyond AI.
Vertiv (VRT) sells the systems that prevent servers from overheating. Its quarterly sales jumped 24%, prompting higher annual forecasts.
Several Wall Street analysts argue that these suppliers benefit regardless of which AI developer wins more customers.
Whoever Wins the OpenAI-Anthropic Race, These 3 Stocks Still Get PaidBut What Happens If the AI Bubble Bursts?OpenAI recorded a $38.5 billion loss in 2025. Anthropic reported nearly $42 billion in losses, though $34 billion came from a non-cash accounting charge.
Anthropic has also committed $518 billion to future computing and infrastructure spending.
Michael Burry, famous for predicting the 2008 financial crisis, wants the market to crash before the AI giants go public.
“For the benefit of humanity, the markets should tank hard and prevent the OpenAI and Anthropic IPOs.”
Former BitMEX CEO Arthur Hayes shares those concerns.
“There always is a crash, and there always is a bailout.”
Thursday offered a warning. OpenAI’s annualized revenue is reportedly $20 billion below an earlier estimate, largely because of differences in counting cloud-partner sales.
The Nasdaq 100 fell more than 300 points within half an hour amid wider market pressure.
For GE Vernova, Quanta and Vertiv, the orders are real. The question is how long AI companies can afford to keep building at this pace.
BitMEX co-founder Arthur Hayes wrote in an article that at the onset of every major bull market, the crypto market must navigate a wall of worry made up of various concerns. In 2017, this took the form of the block size debate; in 2020, it was the COVID-19 pandemic; in 2023, it was the FTX collapse and central bank interest rate hikes; and for 2026, it is the FUD (fear, uncertainty, doubt) sparked by AI crypto technology. The money-printing spree will eventually arrive, driving a sharp rally in asset prices.
Arthur Hayes, CEO of Flop Labs, the AI agent project he leads, announced plans to launch its test network in October.
BitMEX founder Arthur Hayes announced that Flop Labs, the AI agent project he leads as CEO, plans to launch its testnet in October. Hayes stated that following the testnet phase, the mainnet is targeted to launch in the first quarter of next year.
Speaking at the Token2049 event, Hayes shared details regarding Flop Labs’ development schedule. According to the announcement, the project’s testnet will launch in October and will run for approximately 90 days.
During this period, users are expected to test the Flop Labs infrastructure and participate in the project’s pre-mainnet process. The testnet phase will allow for the evaluation of the project’s technical performance and user interactions before the mainnet launch.
Hayes stated that following the completion of the 90-day testing period, the Flop Labs mainnet is planned to be deployed in the first quarter of next year. However, no specific date for the mainnet launch was shared.
Flop Labs will also implement a token incentive program for testnet participants. According to Hayes, users who join the test network will be eligible to receive an airdrop for the project’s FLOP token.
The total amount of FLOPs to be distributed as part of the airdrop, the number of tokens per participant, and details regarding the eligibility requirements were not included in the announcement.
Flop Labs, which focuses on the field of artificial intelligence agents, will launch its testnet, marking a significant milestone in the project’s public technical testing process. If the planned schedule is followed, the project will transition to the mainnet in the first quarter of next year, following a 90-day testnet period.
*This is not investment advice.
Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data!
Anchorage Digital, the first federally chartered US digital asset bank, has reportedly laid off 17% of its staff. Chief Executive Nathan McCauley told employees about the cuts this week, according to The Information.
The report cited people familiar with the matter and tied the layoffs to a year-long crypto market slump. Anchorage has not publicly commented on the reduction.
How Many Jobs Anchorage’s 17% Cut Could ReachMcCauley put the global workforce at about 400 people in congressional testimony in February 2025. If staffing held near that level, a 17% cut would affect roughly 68 jobs.
The real figure may differ since headcount could have shifted since then. BeInCrypto has contacted Anchorage Digital for comment.
The company has made deep cuts before. In 2023, Anchorage laid off 20% of its workforce. McCauley later said that being cut off from banks contributed to that decision.
Follow us on X to get the latest news as it happens
From Bitwise to Coinbase, Crypto’s Job Cuts Keep ComingAnchorage joins a long line of crypto firms that have cut staff in 2026. Gemini shrank its workforce by about 30%, while Crypto.com cut 12% in March.
Coinbase then announced it is eliminating about 700 roles, or 14% of staff, in May. That same month, Dune laid off 25% of its team to focus on AI agents and institutional data.
Exchange Luno trimmed 20% of its staff in July, and Bitwise cut about 14% in August. Others announced complete shutdowns, including BitMEX, the Lisk blockchain, and Ethereum layer-2 network Blast.
Outside crypto, technology companies have stepped up job cuts. US tech firms announced 10,799 cuts in September, up 77% from August, a Challenger, Gray & Christmas report shows.
Tech has announced 165,925 cuts so far in 2026, up 54% from a year earlier. However, total US job cut announcements fell 18% in September, leaving tech with 29% of this year’s cuts.
Subscribe to our YouTube channel to watch leaders and journalists provide expert insights
BitMEX co-founder Arthur Hayes stated during Korea Blockchain Week (KBW) that he expects Ethereum (ETH) to reach $10,000 by the end of this year. The executive also expressed a bullish outlook on ETH’s future prospects in an interview with CoinDesk. As of now, ETH is trading at roughly $2,672.
According to HTX market data, Bitcoin has fallen below $84,000, with a 0.34% drop over the past 24 hours.
3 minutes ago
Jumper will launch its JUMP token via Legion, with plans to spin off from LI.FI to operate independently.
Multi-chain decentralized exchange (DEX) Jumper plans to hold its inaugural JUMP token sale via Legion, and has spun off from LI.FI’s incubated projects to operate as an independent company. Jumper currently boasts over $40 billion in cumulative trading volume, more than 100,000 monthly active users, and ranks as the largest cross-chain aggregator by cross-chain trading volume, holding a market share exceeding 15%. The protocol plans to further expand into perpetual contracts, tokenized stocks, and other real-world assets, and will launch Jumper Perps in the coming weeks. This token sale marks Jumper’s first financing round, with proceeds allocated to product development, user growth, and market expansion. Jumper noted it will not conduct concurrent equity financing; users, contributors, and investors will access the company’s value growth through JUMP tokens, which will be issued separately after the financing closes.
3 minutes ago
Morgan Stanley Enters the Prediction Market, Becomes Strategic Partner of NEXTPredict
Morgan Stanley will serve as a strategic partner at the NEXTPredict Prediction Markets Summit, held in New York from October 22 to 23. Stephen Grambling, the bank’s head of U.S. Gaming, Lodging & Leisure Research, will lead a panel discussion on institutional capital. Pierre Lindh, co-founder of NEXTPredict, said Morgan Stanley is the first bank to publicly participate in an event in this space. Lindh noted that roughly 90% of current liquidity and trading volume in prediction markets comes from sports contracts, and the sector’s high current valuations are built on expectations of large-scale inflows of institutional capital and a shift of prediction markets from "alternative betting" to institutional tools. Morgan Stanley previously participated in Kalshi’s $1 billion funding round completed in May, and released a research report on prediction markets in April this year.
3 minutes ago
Bitwise files for registration of NEAR ETF, plans to list on NYSE Arca.
U.S. SEC filings show that Bitwise’s NEAR ETF has filed a Form 8-A registration statement, seeking to register its common beneficial certificates for trading on NYSE Arca. The documents state the ETF is sponsored by Bitwise Investment Advisers, LLC, and the corresponding S-1 document was submitted to the SEC on September 16. The Bitwise NEAR ETF is intended to provide exposure to exchange-traded products tied to NEAR-related assets. This Form 8-A was signed on September 24, on behalf of Bitwise by Chief Operating Officer Teddy Fusaro.
3 minutes ago
AI computing firm Nscale has secured $3.36 billion in pre-IPO convertible note financing, led by Third Point, with NVIDIA adding a $1 billion commitment.
AI computing power company Nscale announced the completion of a $3.36 billion pre-IPO convertible bond financing round, led by Third Point, with participation from Nvidia, Apollo’s funds, Citadel, Hudson Bay Capital, the Abu Dhabi Investment Committee, and 8090 Industries, among others. The financing includes $2.36 billion that closed at signing, plus an additional $1 billion committed by Nvidia for mid-November 2026. The convertible bonds will automatically convert to common shares after Nscale’s IPO, with Nvidia’s holdings converting to non-voting shares. Nscale stated that its total cumulative contract value (TCV) exceeds $103 billion, and the proceeds from this round will be used to expand its global AI data centers, GPU clusters, and power infrastructure. Goldman Sachs served as the placement agent for the financing.
BitMEX co-founder Arthur Hayes announced in a post that Flop Labs’ new round of competition will kick off at 12:00 UTC today. Participants are required to predict the price of the Xyz NVDA perpetual contract on Hyperliquid as of October 4, 2026. According to Hayes, participating AI agents must review the competition rules, claim trading funds, and execute trades against each other on the Technocore platform. The top three AI agents by profit ranking will jointly receive 1 million FLOP tokens, with rewards to be distributed after Flop Labs’ mainnet launches.
The derivatives exchange that popularized the perpetual swap closed for good on Wednesday. Customers can still take their money out, and BitMEX says balances left on the platform draw a monthly account fee.
BitMEX officially shuts down
Original Photo by Donald Teel on Unsplash
Posted September 23, 2026 at 12:13 pm EST.
BitMEX, the crypto derivatives exchange that popularized the perpetual swap, closed for good at 04:00 UTC on Wednesday, Sept. 23, after 11 years. Its last spot markets had already stopped trading on Sept. 21. The website stays open for logins and withdrawals, but new deposits will not be credited, BitMEX said on X.
Arthur Hayes, Ben Delo and Samuel Reed launched BitMEX in 2014. Its owner, HDR Global Trading, announced the closure in July, citing “a strategic review of the business and the broader crypto industry.” “There are no legal or regulatory issues associated with the closure,” the company says on its support site.
Withdrawals and Fees Customers can pull funds through BitMEX’s website. BitMEX told users on Sept. 3 that API withdrawals would keep working through 04:00 UTC on Sept. 28. A support-center page updated on Sept. 23 lists them as already disabled and says USDT, USDC and ether can go out only over the Ethereum network. BitMEX said it is phasing in security steps for withdrawals, which can include refreshing identity checks, sending a test transaction and waiting through a cooldown.
BitMEX said on X on Wednesday that account fees of 1% a year or a $50 equivalent, whichever is greater, charged monthly on verified accounts, “now apply,” and its Telegram channel said the same. A support-center page updated the same day gives Oct. 1 as the start date for those accounts, says fees also apply to accounts that have not completed identity checks, and says the rates can change. BitMEX said in July that the fee would rise over time on balances left in place.
BitMEX says customer assets are held apart from its own. Its support center also warns that any message offering priority or accelerated withdrawals is “quite likely to be a scam.”
The Celsius Lawsuit Separately, the Celsius bankruptcy estate is seeking at least 6,360 BTC, worth more than $530 million at Wednesday’s prices, from HDR Global Trading and four affiliates. Its complaint, filed Sept. 12 in federal bankruptcy court in New York as part of Celsius’s Chapter 11 case, accuses BitMEX of fraud over two liquidations on March 12 and 13, 2020, one of Celsius itself and one of a fund whose claims Celsius now holds. The estate alleges the exchange used its control of margin requirements, liquidation prices and its liquidation engine to manipulate bitcoin markets and push prices down, generating revenue at its own customers’ expense. The court has not ruled on any of the claims.
Another exchange, CoinEx, said on Sept. 15 that it will close for good on Dec. 22.
Related Listen: How Zcash and NEAR Are Driving This Crypto Bull Run
AI-assisted content: This article was produced with the assistance of AI tools and was reviewed, edited, and fact-checked by a member of the Unchained editorial team before publication.
In brief BitMEX officially ended exchange operations Wednesday, closing out a wind-down announced in July. Trading and deposits are off, but withdrawals remain open. Verified users who leave balances behind now pay 1% a year or $50, whichever is greater, charged monthly and set to rise over time. The exchange invented the crypto perpetual swap but faced a 2024 guilty plea. Its co-founders were pardoned by President Donald Trump in 2025. The exchange that gave crypto the perpetual swap has officially closed its doors.
BitMEX ended all exchange operations at 04:00 UTC Wednesday, the company said on X, capping a two-month wind-down. Trading, deposits and new positions are gone, though users can still log in and withdraw.
Myriad: How high will Bitcoin go? Click to make your prediction."Your funds remain completely safe," BitMEX wrote, urging customers to withdraw remaining balances as soon as possible. Deposits are no longer credited, and users shouldn't send funds to BitMEX addresses.
Lingering will cost them. Users who completed KYC identity checks now face an account fee of 1% a year or $50 equivalent, whichever is greater, charged monthly. BitMEX has said that fee will rise over time. Security measures, including KYC refreshes and cooldown periods, are rolling out in stages, and the company has warned of phishing scams promising faster withdrawals.
In July, owner HDR Global Trading pinned the closure on a strategic review of the business and the broader industry. BitMEX halted new sign-ups immediately, barred new positions from Aug. 26 and began force-closing open trades.
Founded in 2014, BitMEX invented the perpetual swap, or perp, a futures contract with no expiry date that offered up to 100x leverage. BitMEX calls it crypto's most traded product and says it never lost user funds to a hack.
Its later history was rockier. BitMEX pleaded guilty in 2024 to Bank Secrecy Act violations and paid $100 million in penalties. In March 2025, President Donald Trump pardoned co-founders Arthur Hayes, Ben Delo and Samuel Reed.
Delo has since turned to British politics, giving Nigel Farage's Reform UK £8 million this year, according to Electoral Commission records.
"Thank you to everyone who traded with us. It's been an honour," BitMEX wrote.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
In brief BitMEX officially ended exchange operations Wednesday, closing out a wind-down announced in July. Trading and deposits are off, but withdrawals remain open. Verified users who leave balances behind now pay 1% a year or $50, whichever is greater, charged monthly and set to rise over time. The exchange invented the crypto perpetual swap but faced a 2024 guilty plea. Its co-founders were pardoned by President Donald Trump in 2025. The exchange that gave crypto the perpetual swap has officially closed its doors.
BitMEX ended all exchange operations at 04:00 UTC Wednesday, the company said on X, capping a two-month wind-down. Trading, deposits and new positions are gone, though users can still log in and withdraw.
Myriad: How high will Bitcoin go? Click to make your prediction."Your funds remain completely safe," BitMEX wrote, urging customers to withdraw remaining balances as soon as possible. Deposits are no longer credited, and users shouldn't send funds to BitMEX addresses.
Lingering will cost them. Users who completed KYC identity checks now face an account fee of 1% a year or $50 equivalent, whichever is greater, charged monthly. BitMEX has said that fee will rise over time. Security measures, including KYC refreshes and cooldown periods, are rolling out in stages, and the company has warned of phishing scams promising faster withdrawals.
In July, owner HDR Global Trading pinned the closure on a strategic review of the business and the broader industry. BitMEX halted new sign-ups immediately, barred new positions from Aug. 26 and began force-closing open trades.
Founded in 2014, BitMEX invented the perpetual swap, or perp, a futures contract with no expiry date that offered up to 100x leverage. BitMEX calls it crypto's most traded product and says it never lost user funds to a hack.
Its later history was rockier. BitMEX pleaded guilty in 2024 to Bank Secrecy Act violations and paid $100 million in penalties. In March 2025, President Donald Trump pardoned co-founders Arthur Hayes, Ben Delo and Samuel Reed.
Delo has since turned to British politics, giving Nigel Farage's Reform UK £8 million this year, according to Electoral Commission records.
"Thank you to everyone who traded with us. It's been an honour," BitMEX wrote.
Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.
The cryptocurrency exchange BitMEX concludes operations on September 23 following over a decade in digital asset derivatives trading. Trading services including spot markets, conversion tools, and primary derivatives products were discontinued prior to the complete shutdown. Outstanding open trades will be force-liquidated at applicable settlement prices when the platform ceases functioning. Users retain withdrawal capabilities post-closure, though monthly fees and enhanced identity verification procedures will be enforced. The exchange unsuccessfully pursued acquisition deals targeting approximately $1 billion in valuation before opting to close. BitMEX has announced the permanent closure of its cryptocurrency trading platform following more than eleven years of continuous operation, marking the conclusion of a pioneering chapter in digital asset derivatives markets. The exchange will officially terminate all trading services at 04:00 UTC on September 23.
BitMEX’s exchange operations have officially ended as of 04:00 UTC today, 23 September 2026.
Your funds remain completely safe. Login and withdrawal capabilities remain available, and we strongly encourage all users to withdraw their remaining withdrawable balances as soon as… https://t.co/Pah1NpTJ6I
— BitMEX (@BitMEX) September 23, 2026
This shutdown represents the final stage of a systematic operational wind-down that progressively eliminated the platform’s core trading offerings. Bitcoin and Ethereum derivatives contracts reached final settlement on September 16, while spot market trading concluded on September 21 and conversion services terminated on September 22.
Final Trading Operations and Position Settlement All remaining open positions at the time of closure will undergo forced settlement based on applicable contract pricing or index values according to the platform’s established settlement protocols. The exchange had previously restricted users from initiating new positions while permitting them to close out existing holdings.
Following the shutdown, BitMEX will maintain a stripped-down website allowing customers to access account balances, review transaction records, and process asset withdrawals. Any deposits transmitted to the platform after the official closure timestamp may fail to credit properly and could become irretrievable.
Accounts maintaining balances after September 23 will incur monthly maintenance charges. Users with verified accounts holding residual funds will face fees calculated as the greater amount between $50 monthly or an annualized 1% rate on holdings.
API-based withdrawal functionality remains accessible through September 28, after which point the website interface becomes the exclusive method for fund retrieval. Additionally, the platform is restricting USDT, USDC, and ETH withdrawals exclusively to the Ethereum blockchain network starting from that deadline.
Acquisition Attempts Unsuccessful Before Shutdown Decision According to reports, BitMEX dedicated approximately two years pursuing potential acquisition opportunities before ultimately determining to cease operations. Competing cryptocurrency exchanges and digital wallet provider Exodus were among entities reportedly engaged in acquisition discussions, with BitMEX pursuing a purchase price approximating $1 billion.
Those negotiation efforts ultimately collapsed without reaching agreement. Diminishing trading volumes also eroded the platform’s competitive standing within a marketplace increasingly controlled by larger centralized trading venues and emerging decentralized perpetual contract platforms.
BitMEX futures trading volume had surpassed $100 billion monthly during certain periods throughout 2021 but experienced substantial declines in subsequent years. Market data from Kaiko referenced in industry reports indicated daily trading volume had contracted to approximately $400,000 with market share falling below 0.01% at the time closure plans were revealed.
Notwithstanding its eventual decline, BitMEX established significant influence throughout cryptocurrency trading evolution. The platform’s XBTUSD perpetual contract became instrumental in mainstreaming perpetual swap instruments, which eliminate expiration dates and employ periodic funding rate mechanisms to maintain price alignment with underlying assets.
Customer Advisory on Fund Retrieval and Security Threats BitMEX has issued advisories to remaining account holders emphasizing the importance of withdrawing digital assets and maintaining vigilance against fraudulent phishing schemes. The company explicitly stated it does not provide expedited withdrawal services and cautioned users about deceptive communications promising accelerated fund access.
Certain returning customers may encounter requirements to refresh their know-your-customer documentation before completing withdrawals. Supplementary security verification procedures, test transaction requirements, and minimum withdrawal thresholds may apply based on individual account status and asset type.
BitMEX maintains that customer assets remain entirely backed at full value and emphasized its track record of zero customer fund losses attributable to security breaches throughout its operational history spanning more than eleven years. The organization referenced its proof-of-reserves documentation and liability attestations throughout the wind-down process.
The September 23 closure definitively ends BitMEX’s trading operations, although customers retaining funds on the platform will continue accessing withdrawal capabilities for the foreseeable future.
BitMEX ends crypto trading, keeps withdrawals open after closureBitMEX officially ended exchange operations after more than 11 years, while withdrawals remain open as the crypto derivatives platform urges users to remove their funds.
BitMEX ended all exchange operations at 4:00 UTC on Wednesday, two months after the crypto derivatives exchange announced plans to shut down after more than 11 years of operations.
The platform no longer allows trading or deposits, but users can still log in and withdraw remaining balances through its website, BitMEX announced in an X post on Wednesday.
As part of its gradual phaseout, BitMEX will disable application programming interface (API) withdrawals on Sept. 28, requiring users to process withdrawals through the web platform.
BitMEX said users’ funds remain secure and urged customers to withdraw their remaining balances. The company reiterated that its owner and operator, HDR Global Trading Limited, decided to close the exchange after a strategic review of the business and broader crypto industry, adding that the closure was not linked to legal or regulatory issues.
BitMEX originally announced the closure on July 23, when it said it would cease exchange services on Sept. 23 after more than 11 years of operations. The platform, launched in 2014, became a major venue for crypto derivatives and helped popularize perpetual swaps with leverage of up to 100 times.
The closure comes days after the Celsius bankruptcy estate sued five BitMEX-linked companies, alleging fraud, market manipulation and wrongful liquidations tied to 6,360 Bitcoin during the March 2020 market crash. The estate is seeking Bitcoin worth nearly $490 million at the time the lawsuit was reported.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
BitMEX ends crypto trading, keeps withdrawals open after closureBitMEX officially ended exchange operations after more than 11 years, while withdrawals remain open as the crypto derivatives platform urges users to remove their funds.
BitMEX ended all exchange operations at 4:00 UTC on Wednesday, two months after the crypto derivatives exchange announced plans to shut down after more than 11 years of operations.
The platform no longer allows trading or deposits, but users can still log in and withdraw remaining balances through its website, BitMEX announced in an X post on Wednesday.
As part of its gradual phaseout, BitMEX will disable application programming interface (API) withdrawals on Sept. 28, requiring users to process withdrawals through the web platform.
BitMEX said users’ funds remain secure and urged customers to withdraw their remaining balances. The company reiterated that its owner and operator, HDR Global Trading Limited, decided to close the exchange after a strategic review of the business and broader crypto industry, adding that the closure was not linked to legal or regulatory issues.
BitMEX originally announced the closure on July 23, when it said it would cease exchange services on Sept. 23 after more than 11 years of operations. The platform, launched in 2014, became a major venue for crypto derivatives and helped popularize perpetual swaps with leverage of up to 100 times.
The closure comes days after the Celsius bankruptcy estate sued five BitMEX-linked companies, alleging fraud, market manipulation and wrongful liquidations tied to 6,360 Bitcoin during the March 2020 market crash. The estate is seeking Bitcoin worth nearly $490 million at the time the lawsuit was reported.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
23 September 2026 | 13:13 BitMEX ended all trading services at 04:00 UTC on September 23, closing an exchange that spent more than 11 years shaping the crypto derivatives market.
What ended at 04:00 UTC? BitMEX’s updated support notice confirms that all trading services officially ceased at the scheduled deadline. Users can no longer open, reduce or otherwise manage positions on the exchange.
BitMEX said any contracts still open at the cutoff would be closed automatically using the relevant settlement price or index. The resulting funds were due to be added to each customer’s wallet balance.
The restrictions leading to the shutdown were covered in our original BitMEX closure guide. The practical question now is what customers can still access after trading has stopped.
SEPTEMBER 23, 04:00 UTC
Trading ended
Exchange services stopped and remaining positions were scheduled for settlement.
SEPTEMBER 28, 04:00 UTC
Withdrawal options narrow
API access and several multi-network withdrawal options will be removed.
Can customers still withdraw from BitMEX? Yes. Former customers can continue signing in through the official BitMEX website to view wallet balances, inspect transaction history and request withdrawals.
They should not make new deposits. BitMEX says deposits sent after the September 23 cutoff will not be credited and may be impossible to recover.
Users with remaining balances should:
Open BitMEX through its official website rather than a link received by email or social media. Confirm that the result of any automatic contract settlement appears in the wallet balance. Check that the receiving wallet supports both the asset and the selected blockchain network. Complete API-dependent or multi-network withdrawals before September 28 where possible. BitMEX has also warned about impersonators offering priority withdrawals. The exchange does not provide an accelerated withdrawal service. Account problems should be raised through its official support portal.
Balances left behind may incur a fee BitMEX says verified accounts holding funds after the closure are subject to a charge applied monthly. Its terms describe the fee as 1% per year or a $50 equivalent minimum, whichever is greater.
The charge is deducted from the remaining balance and cannot push an account below zero. BitMEX says a balance smaller than the applicable minimum may eventually be reduced to zero. Users should check the amount shown in their accounts rather than assume how the calculation applies to them.
What changes again on September 28? Withdrawals remain available, but the methods for requesting them will become more limited at 04:00 UTC on September 28.
API withdrawals will stop. Automated withdrawal requests will no longer be supported. Fireblocks and Copper connections will stop working. Institutions using those integrations will need to change their withdrawal process. USDT, USDC and ETH will become Ethereum-only withdrawals. Their alternative network options will be removed. Remaining withdrawals must be requested manually. Customers will need to use the BitMEX website. This deadline matters most to institutional users with automated treasury systems and to customers planning to withdraw stablecoins through a lower-cost network. Withdrawals will not end on September 28, but some of the more convenient routes will.
Why did the wider derivatives market barely react? The closure is historically notable, but BitMEX no longer controlled enough trading activity to create a sudden market-wide liquidity gap.
At the time of the July shutdown announcement, Kaiko data cited by Reuters placed the exchange’s daily trading volume near $400,000 and its market share below 0.01%. Those figures were a July snapshot rather than measurements from the final trading day, but they show how small BitMEX had become relative to the broader exchange market.
The decline did not begin on September 23. Our earlier analysis of BitMEX open interest showed that derivatives activity had already contracted substantially before the exchange reached its final deadline.
That does not prove every position moved to another venue. Some traders may have recreated their exposure elsewhere, while others may simply have closed it. The important point is that BitMEX’s remaining market had been shrinking gradually, preventing the final shutdown from forcing a large amount of activity to relocate at once.
Why did BitMEX close? BitMEX says its owner, HDR Global Trading, made the decision after reviewing the business and the wider crypto industry. The company says the closure was not connected with a new legal or regulatory issue.
It also says customer assets remain secure and points to its record of no customer funds lost through hacks during more than 11 years of operation. Those are company statements rather than an independent verification of every customer balance.
The available evidence instead points to a venue whose commercial importance had already declined. Its final deadline formalized an exit that trading activity had anticipated months earlier.
What part of BitMEX survived? BitMEX helped turn the perpetual swap into one of crypto’s dominant speculative products. A perpetual contract allows traders to take leveraged long or short positions without a fixed expiry date.
The exchange became particularly associated with leverage of up to 100 times a trader’s collateral. That allowed a relatively small deposit to control a much larger position, but it also meant that a minor adverse price move could trigger liquidation.
Neither feature remains unique to BitMEX. Perpetual contracts, funding payments and high leverage are now available across numerous centralized exchanges and onchain trading platforms.
BitMEX therefore lost its position in the market, but the trading model it popularized became standard across competing venues.
The exchange closed after its market had already contracted BitMEX’s final day produced little visible disruption because its decline happened before the trading engine was switched off. The exchange closed on September 23; the reduction in its liquidity and open positions had been underway for much longer.
This article is provided for informational purposes only and does not constitute financial, investment or legal advice. Former BitMEX customers should confirm withdrawal requirements and supported networks directly through the exchange’s official website.
Author
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
Daniel Hinton, known for his experience managing global liquidity relationships at SFOX, recently addressed the evolving landscape of Bitcoin market efficiency. Hinton described the complexity of maintaining a 24/7 global market where the blockchain operates as the sole clearinghouse, highlighting its challenges compared to traditional finance.
Liquidity Gaps and Exchange DislocationsHinton pointed out that in 2018, significant price discrepancies between exchanges, sometimes spanning several percentage points, were a routine issue. These arbitrage opportunities were prevalent due to less efficient market structures and fragmented liquidity pools.
Over recent years, these large-scale dislocations have mostly vanished as market infrastructure matured. Improvements in exchange connectivity and pricing transparency have helped narrow price differentials, leading to a more consistent trading environment across platforms.
Despite these advances, isolated incidents still cause dramatic market moves. Hinton cited the recent BitMEX wind-down, during which thin liquidity caused a perpetual swaps market wick to spike above $150,000. This sharp price movement affected traders relying on margin and stop-loss orders, underlining the risks inherent in illiquid trading scenarios.
Challenges in Bitcoin Market StructureWith no centralized clearinghouse and a global, non-stop trading schedule, Bitcoin markets often present unique operational difficulties. Hinton emphasized that efficient settlement relies entirely on the blockchain, requiring sophisticated strategies by institutions to manage risk and exposure.
Custody solutions remain an unresolved challenge. The lack of robust infrastructure for securely holding digital assets continues to be a concern for institutional investors, contributing to hesitation from some market participants.
Hinton also referenced ongoing efforts to create open-source price software that runs alongside individual Bitcoin nodes. These tools aim to enhance price discovery and transparency in a market where no single benchmark price prevails due to decentralized trading activity.
Institutional Involvement and Future DevelopmentsAs institutional adoption increases, the focus has shifted to building reliable tools and structures. Areas such as sustainable balance sheet management and the ability to track dislocated assets across multiple markets have gained importance.
Institutions are now demanding robust technical solutions before fully implementing digital asset mandates. The development of advanced oracles, custody models, and price-tracking tools factors prominently in unlocking broader adoption of Bitcoin and other cryptocurrencies.
Market observers have noted that technical signals, including the formation of certain chart patterns or the breaking of key resistance levels, play an increasing role in guiding both individual and institutional trading strategies. In fast-moving sectors like meme tokens, the ability to quickly identify trends and investor activity can be critical. In the meme token market, an internet trend can transform into millions of dollars of interest within days. According to data shared by Fomo App, a trade involving “Niu Lai”—which turned an initial $99 investment into approximately $370,000—stands out as a striking example of this activity. In this market, tracking not only prices but also the timing and token choices of investors is crucial. Fomo App brings token discovery and trading together on a single platform, featuring social feeds, investor rankings, and trade notifications. Discover Fomo App to follow the world of meme tokens alongside investor activity.
UTXO Management and BTC Inc., the producer of BMTV, both operate under Nakamoto Inc. (NASDAQ: NAKA).
Hinton highlighted the difficulties of running margin and stop-loss strategies in a market where large price wicks, like the recent spike above $150,000 during the BitMEX event, can quickly cascade across thin order books and impact traders worldwide.
He also noted that current institutional investors frequently deploy open-source price-tracking tools alongside their nodes to capture more accurate and timely pricing data, aiming for greater portfolio resilience in a volatile market environment.
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
BitMEX co-founder Arthur Hayes suggested that a slowdown in the AI sector in the US could support the price of Bitcoin (BTC) in the long term. According to Hayes, a potential slowdown in the AI sector could trigger developments leading to an expansion of the money supply in the US.
In a blog post, Hayes noted that weakening demand for AI computing power could make debt risks associated with data centers more visible. He specifically stated that debt used to finance investments in AI infrastructure could create new risks if growth in the sector slows.
Hayes argued that in such a scenario, the US government might consider providing liquidity to support the AI sector or to bail out insurance companies exposed to distressed assets. In either case, he noted, this would involve injecting more money into the economy, increasing the money supply.
The co-founder of BitMEX suggested that Bitcoin and some altcoin prices could be positively affected if the money supply expands. Hayes’ assessment focuses on the potential connection between developments in the artificial intelligence sector, global liquidity conditions, and cryptocurrency markets.
The key element in Hayes’ scenario is not that a slowdown in the AI sector will directly increase Bitcoin demand, but rather that the pressure it could put on the financial system might lead policymakers to provide more liquidity. However, this approach reflects Hayes’ view of economic and market conditions; potential policy actions or their impact on the Bitcoin price are not considered certain developments.
*This is not investment advice.
Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data!
Arthur Hayes, the BitMEX co-founder who now leads Flop Labs and serves as chief investment officer at Maelstrom, used Bitcoin’s rebound above $81,000 to argue that Washington’s latest market-structure bill was never the real catalyst.
In his telling, crypto did not need the Digital Asset Market CLARITY Act.
It needed a Federal Reserve rate increase that, he says, puts more cash in the hands of wealthy investors who then buy financial assets.
The timing of that claim mattered.
On September 15, 2026, the Senate failed to invoke cloture on H.R. 3633, the CLARITY Act, by a 49-50 vote.
The motion required 60 votes, so the chamber never began formal debate. Industry executives treated the result as a serious setback after years of lobbying for a federal framework that would split oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission(CFTC).
Bitcoin slipped toward the mid-$75,000s after the vote.
A day later, the Federal Open Market Committee (FOMC) raised its policy range by 25 basis points to 3.75%–4.00%, the first hike since 2023.
Officials cited still-elevated inflation and said the move would help return prices toward the 2% target.
Conventional market logic holds that higher rates should pressure assets that pay no yield.
Hayes flipped that script.
He argued that higher policy rates also lift income on reserves and other interest-bearing holdings, and that affluent owners recycle some of that income into stocks, Bitcoin, and other financial claims.
See we didn’t need some nonsense piece of crypto regulation, Clarity Act, just a rate hike that puts more dollars in the hands of rich people to consume more financial assets.
— Arthur Hayes (@CryptoHayes) September 18, 2026
By Saturday, Bitcoin was trading near $81,300 after climbing more than 3% and squeezing short positions.
Data cited by market reports showed roughly $192 million in leveraged crypto liquidations in a short window, most of it shorts.
Forced buying amplified the rebound.
Hayes treated that price action as evidence that liquidity, not a stalled bill, was doing the work.
Not everyone agreed that the hike would matter much.
Grayscale research head Zach Pandl called it a mid-cycle adjustment rather than a regime change.
He pointed to the one-off 1997 tightening that failed to end the Nasdaq bull market and said one or two increases in 2026 were unlikely to reshape capital allocation.
Pandl did note a narrower effect: higher cash rates can lift revenues for stablecoin issuers and make tokenized cash products more attractive.
The CLARITY Act is not formally dead. It remains on the calendar, and supporters could try again if they assemble a broader coalition. The calendar, however, is tight.
If Congress does not finish the process this year, the bill would likely have to start over in 2027.
Hayes has long argued that Bitcoin’s core value comes from sitting outside the regulatory apparatus and that price is driven mainly by the stock of fiat money.
In that framework, a failed market-structure vote is secondary. The immediate lesson he drew from this week was simpler: Bitcoin recovered after legislation stalled and after the Fed tightened, not because of a new rulebook.
BitMEX co-founder Arthur Hayes expresses bullishness on ENA, targeting a price of $0.5. Per HTX market data, ENA is now trading at $0.2136, up 24.19% in the last 24 hours.
Relevant content
CZ responds to KOLs who called GSTOCK trades nine times this week, with the token price surging nearly threefold to hit a new all-time high.
Binance founder CZ today responded to crypto KOL Jasmy, stating, "The idea of acquiring a listed company via a meme is definitely not something I came up with." Notably, the KOL’s posts on X this week have all centered on GSTOCK, totaling 9 buy calls. According to GMGN market data, GSTOCK has just hit an all-time high, with a current market cap of $20.74 million; earlier this morning, its market cap once dropped below $7 million. The GSTOCK token is paired with BNCB—the on-chain token of BNB treasury firm BNC—as its liquidity pool base. Genius Terminal, an on-chain trading terminal invested by YZi Labs and with CZ as an advisor, previously announced the official launch of its token issuance platform genius.fun on BNB Chain. The platform allows creators to transfer tokenized stocks such as bSTOCKS to a public foundation and split them, then attempt to exercise equity-related rights off-chain. BlockBeats reminds users that relevant token prices are highly volatile, so caution is advised for investments.
5 minutes ago
CZ responds to the KOL who called for GSTOCK trades nine times this week; the token price surges nearly threefold to hit a new high.
Binance founder CZ today responded to crypto KOL Jasmy, stating, "The idea of acquiring a listed company via a meme is definitely not something I came up with." Notably, the KOL’s posts on X this week have all centered on GSTOCK, with a total of 9 buy calls. According to GMGN market data, GSTOCK has just hit an all-time high, with its current market cap at $20.74 million, after dropping below $7 million earlier this morning. The GSTOCK token is paired with BNCB, the on-chain token of BNB Treasury Company BNC, as its liquidity pool base. Genius Terminal, an on-chain trading terminal invested in by YZi Labs and with CZ as an advisor, previously announced the official launch of its token issuance platform genius.fun on BNB Chain. The platform allows creators to transfer tokenized stocks like bSTOCKS to an ownerless foundation and unwrap them, enabling attempts to exercise equity-related rights off-chain. BlockBeats reminds users that relevant tokens are highly volatile, so investors should exercise caution.
5 minutes ago
Jianying fully transitions to an agent-based model: AI assistants are responsible for video editing, and a creation hub takes charge of the entire production line.
Beating AI Insight News Brief: Jianying doubles down on Agent technology at its AI New Creation Launch Event, rolling out two new offerings in one go: the upgraded "Jianying AI Assistant" and "Creation Hub". The former is dedicated to video editing, while the latter integrates the full workflow from ideation to creation and publishing. The Jianying AI Assistant can now use natural language to perform Agent-powered intelligent editing, bulk remixing, video expansion, and template replacement, and can directly call Seedance 2.5. Users only need to describe their desired edits in natural language, and the Agent will invoke Jianying’s tools to execute specific operations. The Creation Hub has a broader scope: it aims to centralize the entire video process from ideation to final production and publishing, and supports custom Skills, allowing users to save frequently used creative workflows for repeated use. Natural language video editing is not a new feature; Jianying already launched its AI Assistant previously. Now it is taking the next step by turning frequently used editing workflows into Skills, eliminating the need for users to re-specify requirements each time.
5 minutes ago
Two dormant entities inactive for over 13 years reactivated simultaneously, collectively transferring 200 BTC.
Since September, multiple long-dormant Bitcoin wallets have initiated transfers one after another, with September 19 being no exception. Before a transfer from a 2011 wallet, four other early P2PKH (Pay-to-Public-Key-Hash) wallets each moved 25 BTC, totaling 100 BTC. All four transactions were confirmed at block height 967722. These four wallets were all created in February or March 2013, a period marked by high Bitcoin price volatility and the peak of the Cyprus banking crisis in March 2013. On March 1, 2013, Bitcoin traded at roughly $32, rising to $91.95 by March 31. On-chain data shows the four P2PKH addresses acquired the 100 BTC at an extremely low cost. Just 10 blocks later, at block height 967732, an even older wallet transferred 100 BTC. Created on November 2, 2011, this address moved the 100 BTC in a single transaction from a P2PKH address to a newer P2WPKH (Pay-to-Witness-Public-Key-Hash) wallet. The Bitcoin was originally acquired at just $3.24 per coin. The funds were then fully transferred, with the wallet utilizing the "send all funds at once" feature. It is reasonable to infer that the four 25-BTC transfers, which later flowed into the same wallet, belong to the same entity. This aggregation transaction ultimately landed in a P2WPKH wallet belonging to custodian BitGo.
5 minutes ago
Vitalik: Will not give up on privacy, but will instead step up efforts in this regard.
Ethereum co-founder Vitalik Buterin responded in a post to Paradigm CTO Georgios Konstantopoulos’ question—“What room is there left for privacy going forward?”—stating that privacy only truly dies when one gives up on it. “I will not give up on privacy; instead, I will double down on it,” he added. Earlier reports noted that Vitalik updated Ethereum’s roadmap in August, with quantum security, privacy protection, and native Rollups identified as future priorities.
5 minutes ago
Changxin Technology announces official mass production of its 5th-generation technology platform.
At the 2026 World Manufacturing Conference, Changxin Technology announced the official mass production of its fifth-generation technology platform. The company stated that it has achieved a 11.95-nanometer half-pitch for the active area of its memory array, a 45:1 aspect ratio for memory capacitors, and reduced the height of the core active region to 6762 nanometers. Meanwhile, the fifth-generation process platform has seen a significant improvement in storage density: under equivalent conditions, the yield per wafer has increased by more than 50% compared to the previous generation platform. The 24GB LPDDR5X products built on this platform have entered formal mass production and are now fully adopted in domestic mainstream flagship smartphones. (The Paper)
BitMEX has settled and delisted XBTUSD, ending one of the most influential trades in crypto history. The Bitcoin contract ran for more than 10 years and became the template for the perpetual futures market that dominates crypto trading today.
BitMEX itself will shut down on September 23. Yet the product it created is everywhere.
The Bitcoin Trade Every Major Exchange CopiedXBTUSD launched on May 13, 2016. It allowed traders to bet on Bitcoin without an expiry date.
Traditional futures expire on fixed dates. XBTUSD did not. That kept traders in one continuous market instead of splitting liquidity between different contracts.
BitMEX also introduced a funding system to keep the contract close to Bitcoin’s spot price. When too many traders crowded onto one side, they paid the other side.
Then came leverage. At launch, traders could control up to $100 of Bitcoin exposure for every $1 they put down. BitMEX later raised the ceiling to 250x for users who activated its Leverage Booster feature in April 2024.
The idea started as scribbles on a napkin in a Hong Kong bar.
Arthur Hayes, Ben Delo and Samuel Reed kept coming back to the same question: why should a market that trades 24/7 be forced onto futures that expire?
XBTUSD was the world's first perpetual swap – no expiry, funding… pic.twitter.com/6yXChrnbb3
— BitMEX (@BitMEX) September 17, 2026 The model spread quickly. Binance, Bybit, OKX and Hyperliquid now run their own versions.
BitMEX says perpetual contracts account for more than 75% of all crypto trading volume.
Perpetual contracts now account for 75%+ of all crypto trading volume. Source: BitMEXNow Wall Street Wants Perpetuals TooThe format is now moving beyond crypto. Kalshi filed with US regulators in August to offer stock index perpetual futures.
Kraken’s parent company also plans to bring Hyperliquid perpetuals to US traders through a regulated venue.
“12 years. 0 customer funds lost. Every bull and bear cycle crypto has ever had,” BitMEX wrote in its closing post.
That claim refers to customer funds lost through security breaches, rather than losses from trading.
Celsius, for example, sued five BitMEX entities on September 12 over 6,360 Bitcoin lost during forced liquidations in the March 2020 crash.
XBTUSD is gone. The market structure it created is still expanding.
Where the Perpetual Swap Design Is Spreading NowThe design is pushing into ordinary stock markets. Kalshi filed with US regulators in August to list stock index perpetual futures, and Kraken’s parent company plans Hyperliquid perpetuals for Americans through a regulated venue.
“12 years. 0 customer funds lost. Every bull and bear cycle crypto has ever had,” BitMEX wrote that in its closing post.
That record covers hacks, not trading losses. BeInCrypto reported that Celsius sued five BitMEX entities on September 12 over 6,360 Bitcoin lost to forced liquidations in the March 2020 crash.
The product outlived the company that invented it.
The Celsius bankruptcy estate sued five BitMEX-linked companies, alleging fraud, market manipulation and wrongful liquidations during the March 2020 market crash.
The complaint was filed on Sept. 12 in the US Bankruptcy Court for the Southern District of New York by Celsius entities acting through estate representative Blockchain Recovery Investment Consortium (BRIC). Defendants include HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings and HDR Global Services.
The estate alleged that BitMEX wrongfully liquidated and seized 1,325.84 BTC in collateral from Celsius on March 12, 2020, and 5,034.33 BTC from investment fund JST the following day. JST subsequently assigned the related claims to the estate, according to the filing.
The lawsuit seeks the recovery of Bitcoin worth nearly $490 million at the time of writing, and was filed 11 days before BitMEX is scheduled to stop exchange services on Sept. 23.
Cointelegraph reached out to the Celsius estate and BitMEX for comment but did not receive a response before publication.
Celsius alleges BitMEX intensified 2020 sell-offThe Celsius estate alleges that BitMEX controlled the prices used to trigger liquidations, the engine that executed them and the insurance fund that received proceeds from some liquidated positions.
According to the complaint, some liquidation sell orders were placed at prices more than 24% below the next-best ask available on the platform. It also alleges that Bitcoin traded at a lower price on BitMEX than on competing exchanges as the liquidation cycle intensified.
The estate cites the timing of BitMEX’s March 13, 2020, service disruption as evidence for its claim that the exchange’s liquidation engine intensified the sell-off. It alleges that liquidation orders stopped when the platform became unavailable, and Bitcoin’s price then recovered, indicating, in the estate’s view, that forced selling on BitMEX had been suppressing the price.
On March 16, 2020, BitMEX said it experienced two distributed denial-of-service attacks on March 13, at 02:16 UTC and 12:56 UTC.
The estate is seeking actual damages of at least 6,360.16 BTC or its current value, along with the return of the Bitcoin in kind or its equivalent market value. The complaint also requests statutory damages, punitive and any applicable treble damages, profits BitMEX allegedly earned from the liquidations, and legal fees and costs.
The filing does not quantify the additional claims, saying the amounts should be determined at trial.
On July 23, BKX Services and David Namdar filed a separate proposed class action, alleging they lost a combined 622.66 BTC through forced liquidations. That complaint alleged an internal trading desk could access private customer information and continue trading during server freezes.
Responding to the July case, a BitMEX spokesperson told Cointelegraph that it was an “opportunistic claim with no basis” and said the company would vigorously defend itself. The statement concerned the July lawsuit and was not a response to the Celsius complaint.
Magazine: Revolut ID thefts highlight KYC’s dangers: Here’s how to fix it
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
