Arthur Hayes

Arthur Hayes is an American entrepreneur, derivatives trader, and co-founder of BitMEX, one of the first and most influential cryptocurrency derivatives exchanges. Known for popularizing the Bitcoin perpetual swap contract and for his outspoken macro commentary, Hayes has played a central role in shaping the market structure, risk appetite, and regulatory debates surrounding leveraged crypto trading.

Overview

Born in the United States and educated in finance, Hayes began his career as an equity derivatives trader at major investment banks before moving into digital assets. In 2014 he co-founded BitMEX (Bitcoin Mercantile Exchange), which rapidly became a dominant venue for Bitcoin derivatives by offering high leverage, sophisticated order types, and a crypto-native approach to margin and collateral. At its peak, BitMEX reported daily volumes in the tens of billions of dollars equivalent, and its funding rate mechanism for perpetual swaps became a template for the broader industry.

While BitMEX’s success cemented Hayes as an influential figure in crypto trading, the exchange’s compliance practices also drew scrutiny from regulators. In 2020 he was charged in the United States for violations of the Bank Secrecy Act, ultimately stepping down as CEO and later pleading guilty to related charges. Since then, he has remained active as an investor, commentator, and strategist in the digital asset space.

Early Life and Traditional Finance Career

Hayes studied finance at the Wharton School of the University of Pennsylvania, one of the leading business schools in the United States. After graduating, he joined Deutsche Bank in Hong Kong as an equity derivatives trader, focusing on structured products and index-linked instruments for institutional clients in the Asia-Pacific region.

He later moved to Citi, where he continued to work on derivatives and exchange-traded products. This period gave him hands-on experience with leveraged products, market-making, and risk management, as well as direct exposure to the dynamics of highly liquid, electronically traded markets. These skills and perspectives would later inform the design of BitMEX’s core products and trading engine.

Founding BitMEX and the Perpetual Swap

In 2014 Hayes co-founded BitMEX with Ben Delo and Samuel Reed. The exchange was designed from the ground up for crypto traders, with Bitcoin used as the primary form of collateral and settlement currency. Rather than focusing on spot trading alone, BitMEX concentrated on derivatives, including futures and its flagship product, the Bitcoin perpetual swap.

The perpetual swap is a derivative that resembles a futures contract but has no fixed expiration date. BitMEX’s implementation introduced a funding rate mechanism that regularly transfers value between long and short positions to keep the contract price close to the underlying spot price. This design allowed traders to maintain leveraged exposure to Bitcoin indefinitely without rolling contracts, and it quickly became one of the most popular instruments in the market.

BitMEX’s matching engine, high leverage (initially up to 100x on some products), and detailed public metrics attracted both professional and retail traders. At the same time, its aggressive marketing and complex products raised concerns about risk management and suitability for less experienced participants.

Legal Issues and Regulatory Scrutiny

As BitMEX grew, regulators took a closer interest in its operations, particularly its approach to know-your-customer (KYC) and anti–money laundering (AML) procedures. In 2020 U.S. authorities charged Hayes and other BitMEX executives with violating the Bank Secrecy Act by allegedly failing to implement an adequate AML program and allowing U.S. customers to trade on the platform without proper registration or controls.

Hayes stepped down as CEO and later surrendered to U.S. authorities. In 2022 he pleaded guilty to a single count related to willful failure to establish and maintain an effective AML program at BitMEX. He was sentenced to a period of probation, home confinement, and fined several million dollars. The case became a landmark in the regulatory response to offshore crypto derivatives exchanges and underscored that platforms targeting global users could still face enforcement actions from U.S. agencies.

Post-BitMEX Activities and Market Commentary

Following the resolution of his case, Hayes has remained active in the digital asset ecosystem as an investor, essayist, and macro commentator. He co-founded and participates in investment and advisory ventures that focus on crypto infrastructure, decentralized finance, and early-stage projects. His essays, frequently published on blogs and media platforms, combine macroeconomic analysis with views on Bitcoin, Ethereum, and the evolution of the global monetary system.

Hayes is known for a distinctive, often provocative writing style that blends quantitative reasoning, historical analogies, and strong opinions on central banks, liquidity cycles, and the role of crypto as a hedge against monetary debasement. His market calls and thematic pieces are widely read by traders and fund managers, even when they disagree with his conclusions.

Significance for the Digital Asset Ecosystem

Arthur Hayes’s influence on digital asset markets is multifaceted. Through BitMEX, he helped establish the perpetual swap as a core instrument for price discovery and leveraged exposure, a model later adopted by numerous centralized and decentralized exchanges. At the same time, the regulatory actions against BitMEX and its leadership highlighted the risks of operating high-volume trading platforms without robust compliance frameworks.

For the broader ecosystem, Hayes represents both the innovative energy and the regulatory challenges of early crypto derivatives markets. His subsequent role as a commentator and investor continues to shape discussions about how Bitcoin and other digital assets fit into macroeconomic regimes, liquidity cycles, and the future of global finance.

• Maelstrom Chief Investment Officer