December 1, 2020 | AtoZ Markets – BitMEX's parent company 100x Group, has announced that it will welcome a new CEO as the successor to BitMEX's former CEO Arthur Hayes. The company was in a situation where business continuity was temporarily jeopardized after being accused of money laundering. However, the exchange has set up a new system for future business.
BitMEX appoints Alexander Höptner as new CEO to develop a wider vision
The newly appointed CEO, Alexander Höptner, will assume the role of CEO from January 1, 2021.
Höptner has served as CEO of Boerse Stuttgart Digital Ventures, a crypto-related subsidiary under the umbrella of Deutsche Börse AG, a major German stock exchange. "Deutsche Boerse has become the first traditional exchange to offer cryptocurrency trading services in Germany and the EU under the leadership of Mr. Höptner," the 100x Group said in an official statement.
In an interview with The Block, he declined to comment on multiple legal proceedings in the United States, but regarding the current situation such as a decrease in trading volume, he said:
"BitMEX is currently a little calmer than other companies, but the know-how cultivated so far We want to utilize our capabilities to meet the needs of our customers and partners."
In addition, "By appointing Mr. Höptner, BitMEX will develop a wider vision", so there is a possibility to focus on products other than cryptocurrency derivatives.
Although he did not disclose a specific business plan, he mentioned that it is also in the business to provide traditional derivatives based on blockchain. Traditional derivatives mean financial derivatives other than virtual currencies, and are a mechanism for tokenizing those financial products.
BitMEX OI shrinking
BitMEX, which was in full swing in 2019, accelerated customer churn due to the suspension of exchange services during the corona shock in March 2020, the accusation of the US Justice Ministry, and the strengthened KYC system.
The market share of Bitcoin futures open interest (OI) has shrunk from 40% in September 2019 to 11% in November 2020.
Source: The Block
On the other hand, the OI scale of major CMEs, which are mainly used by institutional investors, is still one of the largest.
BitMEX has been charged with money laundry violation by the US Department of Justice (DOJ) and the US Commodity Futures Trading Commission (CFTC) on October 1.
Read also: BitMEX Founders Face Another Lawsuit of Market Manipulation & Money Laundering
As a result, former CEO Arthur Hayes, who was touted as charismatic, and people including the CTO have resigned from their positions, and a new system has been launched.
Think we missed something? Let us know in the comment section below.