Flashbots strategic lead Hasu said on X that structural issues tied to BitMEX’s insurance fund may have been an important reason the company was ultimately shut down rather than sold. He said he had already raised concerns in 2018, arguing that the fund was not managed through segregated accounts and lacked both a clear size cap and a defined framework for handling excess assets. In his view, that setup could create incentives to liquidate users more aggressively, grow the fund through liquidations, and eventually monetize those assets. Hasu estimated the insurance fund may now stand at about $270 million. He also said BitMEX had been seeking potential buyers since at least February 2025, but failed to secure a deal on terms it was willing to accept. He added that questions over asset ownership and legal exposure tied to the fund may have made an acquisition harder for prospective buyers.
Flashbots strategic lead Hasu said in a post on X that structural problems with the BitMEX insurance fund may have been an important reason the company was ultimately shut down instead of being sold.
Hasu said he had already pointed to the issue in 2018. According to him, the BitMEX insurance fund was not managed through segregated accounts, and there was no clear cap on the fund’s size or a defined arrangement for how excess assets would be handled. He said that structure could create incentives to liquidate users more aggressively, expand the insurance fund through liquidations, and eventually monetize those assets.
Hasu estimated that the fund may now be worth about $270 million.
He also said BitMEX had been looking for potential buyers since at least February 2025, but did not reach a transaction it was willing to accept. In Hasu’s view, questions around asset ownership and legal issues tied to the insurance fund may have made it harder for potential acquirers to take over BitMEX, and that mechanism may have ended up being one of the reasons the company was difficult to sell.
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