Upbit halts 1 million won-plus transfers with BitMEX, manual deposits open until Dec. 18

Upbit, a South Korean crypto exchange, on Oct. 16 suspended deposits and withdrawals of digital assets worth 1 million won or more with overseas exchange BitMEX. Upbit said in a notice that the move followed BitMEX ending its integration with VerifyVASP, a travel rule solution. BitMEX shut down its trading services on Sept. 23, and users can now only withdraw their assets.

BitMEX drops off the travel rule list

The travel rule requires exchanges to share sender and recipient information when crypto assets worth 1 million won or more are transferred. Upbit publishes a separate list of service providers that are integrated with a travel rule solution or can verify account holders, and allows transfers of 1 million won or more only with those on the list. Upbit had classified BitMEX as an "account-holder-verified virtual asset exchange," but that channel closed when BitMEX ended its VerifyVASP integration.

Perpetual swap pioneer shuts down after 11 years

HDR Global Trading, which operates BitMEX, said in a July 23 notice that it decided to close the exchange following a "strategic review of the business and the broader crypto industry." New registrations stopped that day, and from Aug. 26 users could no longer open new positions. Trading and deposits ended at 04:00 UTC on Sept. 23, or 1 p.m. KST. Any remaining open positions were forcibly closed.

BitMEX said users can still log in and withdraw after the closure. Withdrawals remain possible after the deadline but may be queued, and bitcoin withdrawals in particular may be delayed, it said. Users who have completed identity verification and have not withdrawn by the deadline will be charged a 1% annual account fee, billed monthly, while accounts with a balance of $50 or less will be charged the equivalent of $50. BitMEX added that the fee may be raised with advance notice. The company said that "all assets exceed liabilities," citing its proof of reserves page.

BitMEX also warned of phishing in the same notice, saying "no such expedited service is available" even if users are contacted with offers to process withdrawals first. It said it would apply early settlement procedures to contracts trading with limited liquidity before the deadline, and that all BMEX, its own token, staked on the platform had been unstaked and returned to holder accounts. BMEX is not listed on the Korean won markets of Upbit or Bithumb.

BitMEX was founded in 2014 by three people including Arthur Hayes, and in May 2016 introduced the perpetual swap with up to 100x leverage. Roshan Dharia, CEO of Echo Base, told Decrypt that BitMEX once held 57% of the crypto derivatives market. In 2024 the company pleaded guilty to violating the U.S. Bank Secrecy Act and paid $100 million, and U.S. President Donald Trump pardoned Hayes and his co-founders in March 2025.

Second transfer suspension in a month, following Coredax

This is the second time in the past month that Upbit has cut off transfers of 1 million won or more with a specific virtual asset service provider. On Sept. 18, Upbit announced that Coredax's use of its travel rule solution had been suspended and that transfers of 1 million won or more with Coredax would be suspended from 1 p.m. KST on Oct. 6. Upbit said at the time that the decision stemmed from issues found during its regular and ad hoc risk assessments of service providers, and also removed Coredax from eligibility for manual deposit approval.

The BitMEX case differs from Coredax in that the integration ended because the exchange closed, not because of a risk assessment. In an Aug. 6 notice announcing BitMEX's closure schedule, Upbit said it would restrict withdrawals of 1 million won or more to BitMEX from 1 p.m. KST on Sept. 23. Upbit asked users at the time to "proceed before the restriction takes effect if a withdrawal is needed," and said even withdrawals under 1 million won should be made after checking BitMEX's schedule for ending deposits, withdrawals and trading. In the same notice, Upbit asked users to "withdraw assets held on the exchange before the service ends." It also reminded users that withdrawal requests cannot be canceled once submitted and that they should double-check the receiving exchange and address.