Key Takeaways
- Arthur Hayes co-founded BitMEX, a leading cryptocurrency exchange, and played a major role in its growth.
- He gained early finance experience at Deutsche Bank and Citibank, shaping his career in digital finance.
- In 2020, Hayes co-founded 100x Group to develop decentralized financial systems, aiming to challenge traditional finance.
Who Is Arthur Hayes?
Arthur Hayes is an American entrepreneur born in 1985, best known for co-founding BitMEX (Bitcoin Mercantile Exchange), where he also served as CEO. He is a key figure behind 100x Group, Chief Investment Officer at Maelstrom, and an investor in Ethena Labs. Based in Hong Kong, Hayes has played a major role in the cryptocurrency space.
Arthur Hayes, originally from Detroit, Michigan, attended Nichols School in Buffalo, New York, where he stood out in tennis and cross-country, finishing second in his class in 2004. His family relocated to Buffalo seeking the best academic and athletic environment for him.
Early Career at Deutsche Bank
Arthur Hayes started his career in finance at Deutsche Bank, where he received a graduate scheme contract. He first worked in the London office before moving to Hong Kong to continue his career in investment banking. From 2008 to 2011, Hayes worked as an equity derivatives trader and associate at Deutsche Bank, gaining important experience in financial markets and trading strategies.
Career at Citibank
In 2011, Hayes left Deutsche Bank and joined Citibank in Hong Kong as a Delta One Trader. He continued to expand his knowledge of financial markets during his tenure, holding the position until May 2013. It was during this time that Hayes’s interest in new financial products began to grow, laying the foundation for his future work in the cryptocurrency world.
Founding BitMEX
In 2014, Arthur Hayes co-founded BitMEX (Bitcoin Mercantile Exchange) with Ben Delo, an Oxford-educated mathematician, and Samuel Reed, a programmer and cryptocurrency enthusiast. Their goal was to create a new, advanced peer-to-peer trading platform that could compete directly with major cryptocurrency exchanges like Coinbase, Binance, and Coinmama.
BitMEX’s Mission and Features
The three founders aimed to create a platform that provided advanced financial products, including leveraged contracts, quanto futures, and perpetual swaps, enabling users to trade Bitcoin in a manner similar to traditional financial contracts. BitMEX was designed for more experienced traders by offering high leverage and complex trading options. The platform also acted as a market maker, holding Bitcoin for companies that were unsure about accepting it due to concerns over price changes.
BitMEX’s Growth and Legal Challenges
BitMEX quickly became one of the most successful cryptocurrency exchanges. On its first day of operation, the platform handled $50 million in trading volume. By the end of its first year, BitMEX had earned over $1 billion in revenue, making it a leader in the industry.
BitMEX Lawsuit
Despite its success, BitMEX faced legal problems. In December 2019, Hayes and BitMEX were sued for $300 million by Frank Amato, a former JPMorgan Chase commodity derivatives trader, and RGB Coin Ltd., who claimed to be the first seed investor in BitMEX. The lawsuit stated that their initial $30,000 investment in 2015 was intended to result in shares of the company, but they were never issued the shares they were promised. The lawsuit was settled in January 2021, with the issue being resolved outside of court.
Departure from CEO Role at BitMEX
Arthur Hayes stepped down as CEO of BitMEX in October 2020 due to growing legal and regulatory challenges. The U.S. Commodity Futures Trading Commission (CFTC) filed charges against BitMEX for not following proper rules on anti-money laundering and customer checks. Hayes decided to leave the CEO role to focus on these issues, though he remained involved with the company. After his departure, Alexander Höptner took over as CEO to help BitMEX handle the regulatory concerns.
Co-Founding 100x Group
In July 2020, Hayes co-founded 100x Group, a company that owned HDR Global Trading, the parent company of BitMEX. Hayes was the CEO of 100x Group until October 2020. The aim of the 100x Group was to change the digital financial system by creating an open and decentralized system for financial products. Through 100x Group, Hayes continued working on his vision of making finance more accessible and innovative, to challenge traditional financial institutions.
Role at Maelstrom
In December 2022, Hayes became the Chief Investment Officer (CIO) at Maelstrom, a family office fund that invests in blockchain technology, digital assets, and financial services. At Maelstrom, Hayes used his experience in finance and cryptocurrency to help guide the fund’s investment decisions, focusing on opportunities in new technologies.
Strategic Advisory Role at Covalent
In June 2024, Hayes became a strategic advisor at Covalent, a blockchain data company. Covalent offers data solutions for the blockchain industry, especially Ethereum. Hayes’s expertise in blockchain, finance, and data will help Covalent grow and lead in the Web3 space. He will also help the company expand into the growing link between blockchain and AI.
Investor at Ethena Labs
Arthur Hayes is also an investor in Ethena Labs, a company focused on blockchain and decentralized finance (DeFi). His experience in the cryptocurrency and financial sectors has made him a valuable contributor to Ethena Labs’ growth and development. Through his investment, Hayes continues to support innovative projects in the blockchain space, aiming to advance the industry and create more accessible financial products.
Legacy and Impact on Digital Finance
Arthur Hayes has played a pivotal role in transforming finance by developing systems that foster inclusivity and innovation. His work with BitMEX, 100x Group, and Maelstrom helped shape cryptocurrency trading and decentralized finance. His continued involvement with Covalent shows his dedication to advancing blockchain technology in the digital economy.
Final Thoughts
Arthur Hayes has had a big impact on cryptocurrency and finance. He co-founded BitMEX and helped grow it into a top exchange. In 2020, he started 100x Group to create new, decentralized financial systems. Even with legal challenges, he continued to push forward through roles at Maelstrom and Covalent. Hayes is dedicated to improving blockchain technology and digital finance, leaving a lasting mark on the industry.
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