// startup autopsy
BitMEX (Partial Collapse)
BitMEX's AML failures led to DOJ charges against all founders, triggering a $1.5B bank run in 24 hours.
regulationRegulatory Kill
Forced closure by regulatory action
| Founded | 2014 |
|---|---|
| Closed | 2020 |
| Country | Seychelles |
| Sector | Crypto |
| Founder | Arthur Hayes, Benjamin Delo, Samuel Reed |
// the model, blind
Evaluating only BitMEX (Partial Collapse)’s profile at its peak — without knowing the outcome — the model ranked Regulation as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Arthur Hayes co-founded BitMEX in Seychelles, pioneering 100x leveraged Bitcoin perpetual swaps.
PRODUCT LAUNCH
BitMEX processed over $1 trillion in annual trading volume, dominating the crypto derivatives market.
REGULATORY ACTION
US DOJ and CFTC simultaneously charged all four founders with BSA violations; $1.5B in user withdrawals followed within 24 hours.
SHUTDOWN
Arthur Hayes sentenced to two years probation; BitMEX sold to new owners but permanently lost its market dominance.