BitMEX CEO Arthur Hayes Defends Exchange Against Secretive Crypto Trading Desk Criticisms

Arthur Hayes, the CEO of BitMEX, has recently defended his firm against criticism of being too secretive in a new interview with Yahoo. According to him, the platform does not offer special access to anyone and it does not trade against its own customers, as it does not make any money when customer traders are liquidated.

BitMEX is a P2P Bitcoin futures trading platform that allows retail investors to take positions against each other on how much Bitcoin will be worth in the future. The company was founded in 2014 and it dominates the futures market of Bitcoin.

While some more traditional companies like CBOE and CME are also offering futures, the company has a considerably larger volume than they all together. As the exchange has grown a lot since its inception and the company is largely unregulated, so there are many claims and suspicious around it.

The infrastructure of the company has been criticized often for being greedy and not too much compliant with the laws from the United States despite the fact that the CEO lives in the U. S. and most of its clients are from there.

A recent Medium blog post accuses the company of secretly trading against the customers on a market desk was undisclosed until recently and to weaponize server issues to offer preferential access to certain traders, as well as to liquidate client positions and use excess margins in its insurance fund.

The CEO Defends The Company

The main defense presented by Hayes is that the company uses the market making desk only to bring liquidity to the market instead of trading against the clients. It does this by posting bid and sell orders. According to Hayes, “they are a customer too, so they are treated like any other account”.

His answer doesn’t do a lot to calm people as treating their own company like “any other account” is hardly believable, though, so there is a chance that the article attacking the company has some point.

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