As a digital asset trading platform, BitMEX receives digital asset deposits from clients to allow them to conduct trading activities on our platform. Given we have control over the digital asset private keys BitMEX is safeguarding digital assets on behalf of its clients. As such, we implement specific controls and security measures to protect client assets from fraud or misappropriation, and are committed to operating our business in compliance with all applicable laws, regulations, and regulatory guidance.
Client assets are held for the benefit of our clients and it is they who deploy their funds on BitMEX, not us - as reiterated here, we don’t lend, stake, hypothecate or in any other way deal with clients’ assets except as per their instructions.
Twice a week we provide updated data on our Proof of Reserves and Proof of Liabilities.
Client assets are securely segregated and ring-fenced from BitMEX assets to provide the appropriate protection and perpetual access of client funds. BitMEX Treasury funds are under a separate custody structure, however some BitMEX operational assets, such as gas fees are held in an omnibus structure with client funds to enable transactions. There is strict account segregation and ring fencing of client assets from BitMEX company assets.
BitMEX uses a combination of cold and hot wallets with industry strength cryptography key management to ensure high levels of security and adequate liquidity. To ensure the security of all digital assets, BitMEX has implemented rigorous security measures and has designed its custody offering with security at its core. Rebalancing of assets between cold to hot wallet goes through extra security checks to ensure only the authorised movements of funds. All client withdrawals go through an AML / wallet address risk checks to ensure compliance with Anti-Money Laundering policies.
In order to service clients’ growing needs, on top of using its in-house “Native” custody solution for the safekeeping of Bitcoin (XBT), BitMEX uses industry-leading third party custody services for the secure custody of a growing number of digital assets.
For further information on our deposit and withdrawal process, please see our Terms of Service here. We also recommend you are aware of the risks around storing digital assets on our platform as further set out in our Risk Disclosure Statement here.