Inside the mystery of BitMEX’s insurance fund

Crypto exchange BitMEX is winding down with roughly $270 million sitting in a house insurance fund that customers now suspect its owners will simply keep. 

The fund holds about $239 million worth of BTC and $31 million in USDT. A lot of that came from customers’ trading losses.

The exchange hasn’t disclosed where the money will go after its doors close on September 23 and BitMEX declined to comment on its plans for the fund.

To be clear, the fund is owned by BitMEX, not customers, and the exchange never told customers what it would do with the fund if it ultimately closed for business.

Moreover, the fund has paid out to customers during certain loss events, honoring the exchange‘s original promise.

Still, plenty of people are upset given the substantial size of the fund and a November 2025 rebalancing that drained it of the overwhelming majority of its assets at the time.

The exchange’s proprietary token also seems to have little promise of retaining much value after September. It’s already lost 96% of its value year-to-date after a steep crash on the closure news.

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