Arthur Hayes is a major figure in cryptocurrency trading, best known for co-founding BitMEX in 2014. BitMEX introduced innovative products like the perpetual swap, revolutionizing crypto derivatives trading. Despite regulatory challenges that led to his resignation as CEO in 2020 and legal penalties, Hayes remains influential in the crypto industry.
Today, he manages his family office, Maelstrom, investing in crypto ventures, NFTs, and decentralized technologies. Hayes is also focused on AI-powered DAOs, decentralized exchanges, and blockchain innovation, predicting massive growth in these areas. He continues to shape the crypto landscape through investments, advisory roles, and bold market commentary.
Career Path and BitMEX Creation
Education and Early Career
Arthur Hayes began his finance journey at the Wharton School of Business at the University of Pennsylvania, where he earned a B.S. in Economics and Finance in 2008. Before that, he graduated second in his class from Nichols School in 2004. His mother, Barbara Hayes, reflected on his time at Nichols, saying, "Nichols gave him the setting, the stimulation, and at one point, the scholarship to thrive". These strong academic achievements set the stage for his future endeavors in the crypto world.
After completing his degree, Hayes moved to Hong Kong and gained experience in traditional finance, working at Deutsche Bank and Citigroup.
Founding BitMEX
In 2013, Hayes was laid off from Citigroup, but this setback turned into an opportunity. He saw the potential in the growing cryptocurrency market and envisioned a platform tailored for professional traders. This idea led to the creation of BitMEX (Bitcoin Mercantile Exchange) in 2014. Speaking about his decision, Hayes said, "I’d rather own a business where I’m directly responsible for its success and failure".
BitMEX quickly stood out in the crypto space thanks to its advanced features:
- Trading Volume: Over $3 billion in daily average volume on its XBTUSD product
- Leverage: Up to 100× on Bitcoin/USD trades
- Platform Interface: A design inspired by the Bloomberg Terminal
- Focus: Bitcoin-only, excluding other cryptocurrencies and fiat currencies
By 2017, a venture fund valued BitMEX at $600 million. Hayes and his co-founders, however, chose not to accept the investment. Despite its rapid growth, the company soon faced challenges tied to regulatory compliance.
Regulatory Challenges and Hayes’ Departure
BitMEX’s meteoric rise brought regulatory scrutiny. The platform faced legal issues under the Bank Secrecy Act for failing to meet anti-money laundering standards. These issues led to significant outcomes:
- Hayes stepped down as CEO in October 2020.
- BitMEX agreed to pay a $100 million fine to the CFTC.
- Hayes was sentenced to six months of home confinement, two years of probation, and fined $10 million.
"Arthur Hayes and Benjamin Delo built a company designed to flout those obligations; they willfully failed to implement and maintain even basic anti-money laundering policies. They allowed BitMEX to operate as a platform in the shadows of the financial markets".
Despite these setbacks, BitMEX remained a major player in cryptocurrency derivatives trading, with an average daily trading volume exceeding $2 billion by 2021.
Impact on Cryptocurrency Markets
Advances in Derivatives Trading
Arthur Hayes changed the game for crypto trading by introducing advanced derivatives tools through BitMEX. A major milestone was reached in 2016 with the launch of perpetual Bitcoin futures contracts.
BitMEX stood out by offering features like:
- A professional-grade platform design
- A funding system that kept futures prices in line with spot prices
- Sophisticated risk management tools
These features not only helped BitMEX dominate the market but also pushed regulators to reexamine their approach to crypto trading.
Regulation and Compliance
BitMEX’s developments also brought regulatory issues into sharper focus. The challenges it faced led the industry toward stricter compliance measures. As of March 2023, crypto derivatives made up 74.8% of the total cryptocurrency trading volume. This shift highlights how Hayes’ strategies continue to influence market standards.
"Derivative markets are important because their behavior influences the price dynamics of cryptocurrencies themselves."
– Nicolas Christin, Professor, Institute for Software Research (ISR) and Department of Engineering and Public Policy
Key metrics show the scale of this market evolution:
| Metric | Value |
|---|---|
| Daily Derivatives Trading Volume (2024) | $100+ billion |
| Ratio of Derivatives to Spot Trading | 5:1 |
| Open Interest (2024) | $40+ billion |
Market Analysis and Commentary
In addition to his technological contributions, Hayes has become a prominent voice in the crypto market. His commentary often reflects the innovations that brought BitMEX to prominence. On Bitcoin’s place in the financial world, he has remarked, "Bitcoin is just another financial asset".
"There’s not very many opportunities in financial history where you get to own exchanges. They’re basically just money-printing machines."
The perpetual swap contracts Hayes introduced have since become standard offerings across major cryptocurrency exchanges, cementing his lasting influence on the crypto derivatives market.
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Current Projects and Activities
Investment Projects
Arthur Hayes has taken a strategic approach to investments through Maelstrom, his family office focused on cryptocurrency ventures. In July 2023, Maelstrom joined a Pre-A funding round for Aethir – a decentralized cloud network tailored for gaming and AI – valued at $150 million.
Hayes also advises Oyl, a Bitcoin Ordinals wallet, and collaborated on the Airheads collection. This collection features 10,000 unique Bitcoin Ordinals and introduces a leaderboard system where wallet size determines the holder’s rank. His portfolio is diverse, with nearly half of his investments directed toward NFT projects, alongside funding for early-stage DeFi initiatives.
Market Outlook
Hayes remains optimistic about decentralized technologies, particularly highlighting the role of AI-powered DAOs and Ethereum’s importance in the crypto ecosystem.
"Ethereum transactions will grow exponentially as DAOs proliferate. As a result, the price of ETH should skyrocket in anticipation if this AI DAO hypothesis is widely believed."
He’s also pushing for a revival of decentralized ICOs, aiming to give retail investors more opportunities and challenge the dominance of venture capital. In his words:
"Why did we forget that crypto was meant to empower retail investors?" – Arthur Hayes
Through his active involvement, Hayes continues to influence and shape the direction of emerging sectors.
Industry Engagement
Hayes has shown growing interest in the Decentralized Science (DeSci) sector, which gained considerable traction in 2024 with a 2,600% increase in attention. Through Maelstrom, he has invested heavily in seven key DeSci tokens, signaling his belief in this developing area.
"DeSci is one of the few truly new narratives in the space that many market participants have yet to hear of." – Lukas Ruppert, Analyst at Maelstrom
As Maelstrom’s Chief Investment Officer, Hayes is known for his bold investment strategies:
"I will encourage the risk-takers at the fund to turn the risk dial to degen, or high-risk trading." – Arthur Hayes, Chief Investment Officer at Maelstrom
He continues to back projects that challenge traditional venture capital norms and advocate for broader participation through decentralized platforms.
Arthur Hayes’ Crypto Playbook for 2025
Future Outlook
Arthur Hayes predicts a future where AI-powered DAOs transform economic systems using public blockchains like Ethereum.
He foresees decentralized exchanges (DEXs) becoming key players in global finance, acting as primary hubs for raising capital and trading tokens issued by AI-driven DAOs. Hayes explains:
"A DEX is naturally suited to support the trading of any type of equity, debt, utility, participation, etc. token issued by an AI-powered DAO", and will "likely become natural monopolies", dominating the trading of various DAO-issued tokens.
In line with this vision, Hayes is broadening his focus. Alongside his insights on DEXs, he serves as an adviser to Ritual, a decentralized AI platform. He shared:
"AI is made for decentralization – in fact, the future of this technology hinges on its ability to assert independence from the handful of powerful tech giants who control each input and output. I’m excited to join the Ritual team as an adviser to ensure the burgeoning AI economy has access to a more censorship-resistant, collaboration-powering technology than we currently have",.
Hayes projects that the AI-driven economy could reach a trillion-dollar valuation within the next decade. This growth would fuel demand for blockchain networks, with estimates suggesting Filecoin‘s value could jump by 1,730% if its price-to-capacity ratio improves.
Beyond technology, Hayes is exploring how cryptocurrency can reshape political engagement. He envisions political memecoins as tools for voter engagement and real-time opinion polling, potentially introducing billions of users to the Web3 space.
Through his investment firm Maelstrom and advisory roles, Hayes continues to influence the future of decentralized finance while pushing for advancements in regulation and innovation.