Flashbots Executive Claims BitMEX Insurance Fund Issues May Lead to Its Closure

Flashbots' strategic director Hasu posted on the X platform, pointing out that the structural issues of the BitMEX insurance fund may be a significant reason for the company's choice to close rather than sell. Hasu noted as early as 2018 that the BitMEX insurance fund did not utilize segregated account management and lacked a clear upper limit on fund size and a method for handling excess assets. This could lead to aggressive liquidation of users, incentives to expand the insurance fund through liquidation, and ultimately the monetization of assets. Hasu estimates that the current size of the insurance fund is approximately $270 million. He stated that BitMEX has been seeking potential buyers since February 2025 but has failed to reach a deal. He speculated that the asset ownership and legal issues potentially arising from the insurance fund have increased the difficulty for potential acquirers to take over BitMEX, suggesting that this mechanism may be one of the reasons making BitMEX hard to sell.