{"investigation":{"slug":"bit-com","entity_name":"Bit.com","trust_score":62,"severity_base":null,"score_modifier":4,"confidence":0.72,"status":"draft","content_type":"investigation","summary":"Bit.com was a cryptocurrency derivatives exchange operated by Matrixport, a Singapore-headquartered digital asset financial services firm founded by Bitmain co-founder Jihan Wu. The exchange launched in August 2020 and achieved a top-two global ranking in Bitcoin options volume before conducting an orderly, phased shutdown completed March 31, 2026, citing business restructuring. No fraud allegations, regulatory enforcement actions, or user fund losses have been identified against the exchange itself; the parent company Matrixport rebranded as BIT in March 2026 and continues operating under multiple licensed jurisdictions.","sections":[{"content":"Bit.com was the trading exchange arm of Matrixport, a Singapore-based digital asset financial services company founded in 2019 by Jihan Wu, co-founder of Bitmain Technologies, one of the world's largest Bitcoin mining hardware manufacturers. Matrixport was established as a spin-off of Bitmain to provide crypto financial services including lending, custody, and structured products. The exchange was incorporated in the Seychelles, which served as its operational jurisdiction, while the broader Matrixport group was headquartered in Singapore. Matrixport raised a $100 million Series C round in August 2021 at a $1 billion valuation, led by DST Global, C Ventures, and K3 Ventures, with participation from Qiming Venture Partners, Tiger Global, Lightspeed, Polychain, Dragonfly Capital, CMT Digital, and IDG Capital. A Series C-II round of $38 million followed in January 2023. By the time of its March 2026 rebrand to BIT, the group reported managing over $6 billion in assets and facilitating more than $7 billion in monthly trading volume across seven global offices. In March 2026, Matrixport formally rebranded the broader group as BIT, describing the change as a strategic repositioning reflecting growth in digital asset financial infrastructure.","heading":"Ownership and Corporate Structure","sources":[{"url":"https://www.theblock.co/post/72970/matrixport-crypto-derivatives-exchange","name":"Bitmain spin-off Matrixport is launching a crypto derivatives exchange - The Block","type":"news_article","credibility":2},{"url":"https://decrypt.co/115562/matrixport-targets-new-100m-funding-round-at-1-5b-valuation","name":"Matrixport Targets New $100M Funding Round at $1.5B Valuation - Decrypt","type":"news_article","credibility":2},{"url":"https://www.globenewswire.com/news-release/2026/03/20/3259572/0/en/matrixport-rebrands-as-bit-in-strategic-repositioning.html","name":"Matrixport Rebrands as BIT in Strategic Repositioning - GlobeNewswire","type":"official","credibility":2},{"url":"https://www.forbes.com/profile/jihan-wu/","name":"Jihan Wu - Forbes Profile","type":"news_article","credibility":2}],"severity":"low"},{"content":"Bit.com launched its Bitcoin/USD perpetual swap on August 3, 2020, followed by Bitcoin options on August 17, 2020. The exchange positioned itself as a derivatives-focused platform serving institutional and retail clients including crypto miners, prime brokerages, and hedge funds. At its peak in 2021, the exchange reported daily options volume exceeding $6 billion, ranking it second globally in Bitcoin options. The platform offered spot trading across more than 65 pairs, over 110 futures pairs, and options products, with spot fees of 0.04-0.06% and futures fees of 0.01-0.04%. The exchange operated an insurance fund exceeding 200 BTC and partnered with Fireblocks, Cactus Custody, and Copper.co as third-party custodian solutions. The exchange restricted users from the United States, Canada, Japan, and Singapore due to regulatory considerations in those jurisdictions.","heading":"Exchange Operations and Market Position","sources":[{"url":"https://www.crowdfundinsider.com/2020/07/164643-singapore-based-digital-asset-firm-matrixport-to-launch-bit-com-a-crypto-derivatives-exchange/","name":"Singapore Based Digital Asset Firm Matrixport To Launch Bit.com - Crowdfund Insider","type":"news_article","credibility":2},{"url":"https://tradingfinder.com/exchanges/bit/","name":"BIT.com Review 2025 - TradingFinder","type":"research","credibility":3},{"url":"https://firsttechspot.com/bit.com-crypto-exchange-review-2025-fees-features-risks","name":"BIT.com Crypto Exchange Review 2025 - FirstTechSpot","type":"research","credibility":3}],"severity":"low"},{"content":"On December 27, 2025, Bit.com announced a phased shutdown of its exchange operations, citing business restructuring. The three-phase plan halted new user registrations immediately, terminated spot trading on January 31, 2026, and concluded all operations on March 31, 2026. The exchange directed users to withdraw assets directly or migrate them to Matrixport's broader financial services platform. Bit.com stated that user assets would not be cleared, confiscated, or otherwise disposed of, and committed to transparent and traceable migration with 24/7 access to asset inquiry and withdrawal functions throughout the process. No regulatory violations, fraud allegations, or customer fund losses were cited in the shutdown announcement or in subsequent reporting. The closure coincided with broader consolidation in the crypto exchange sector and the parent company's pivot toward a rebranded, institution-focused identity as BIT. The shutdown was characterized by industry observers as orderly, with user asset protection measures described and no reports of withdrawal blocks or fund seizures.","heading":"Shutdown and Business Restructuring","sources":[{"url":"https://www.cryptopolitan.com/bit-com-set-to-wind-down-operations/","name":"Crypto exchange Bit.com set to wind down operations - Cryptopolitan","type":"news_article","credibility":2},{"url":"https://phemex.com/news/article/bitcom-to-cease-operations-by-march-31-2026-in-threephase-shutdown-49437","name":"Bit.com Announces Shutdown by March 31, 2026 - Phemex News","type":"news_article","credibility":2},{"url":"https://bingx.com/en/news/post/bit-com-to-shut-down-from-dec-with-migration-ending-mar","name":"Bit.com to shut down from Dec 27, 2025, with migration ending Mar 31, 2026 - BingX","type":"news_article","credibility":2}],"severity":"low"},{"content":"In January 2024, Matrixport — the parent company of Bit.com — published a research report authored by Head of Research Markus Thielen predicting the SEC would reject all pending spot Bitcoin ETF applications in January, a view contrary to then-prevailing market consensus. Following the report's circulation on January 3, 2024, Bitcoin's price dropped approximately 8-10%, falling from around $45,400 to below $42,000, triggering approximately $520 million in liquidated long positions. Critics and industry participants including prominent analysts raised allegations of potential market manipulation, arguing the report spread misinformation and caused artificial selling pressure. Jihan Wu responded publicly, stating the widespread dissemination of the report was not planned by Matrixport and was beyond the company's control, and that analysts operate independently of management. Wu attributed the price drop partly to pre-existing high funding rates in perpetual markets rather than solely to the report. No formal regulatory investigation or enforcement action against Matrixport or Bit.com in connection with this report has been publicly reported. The SEC approved multiple spot Bitcoin ETFs on January 10-11, 2024, rendering the report's central prediction incorrect. This incident involved Matrixport the parent company, not Bit.com the exchange directly, and no adjudicated finding of manipulation has been made.","heading":"Matrixport Bitcoin ETF Research Controversy (January 2024)","sources":[{"url":"https://www.coindesk.com/markets/2024/01/03/what-caused-bitcoins-10-crash-matrixport-cramer-leverage","name":"What Caused Bitcoin's 10% Crash: Matrixport? - CoinDesk","type":"news_article","credibility":1},{"url":"https://www.coindesk.com/policy/2024/01/03/bitcoin-spot-etf-proposals-to-be-rejected-by-sec-matrixport","name":"Bitcoin Spot ETF Proposals to Be Rejected by SEC: Matrixport - CoinDesk","type":"news_article","credibility":1},{"url":"https://cointelegraph.com/news/matrixport-founder-says-dissemination-bitcoin-etf-report-beyond-our-control","name":"Matrixport founder says dissemination of Bitcoin ETF report was beyond our control - CoinTelegraph","type":"news_article","credibility":2},{"url":"https://cryptoslate.com/polymarket-etf-odds-fell-to-70-btc-saw-8-flash-crash-amidst-matrixport-prediction/","name":"Polymarket ETF odds fell to 70%, BTC saw 8% flash crash amidst Matrixport prediction - CryptoSlate","type":"news_article","credibility":2},{"url":"https://www.cointribune.com/en/crypto-matrixport-claims-innocence-against-manipulation-allegations/","name":"Crypto: Matrixport Claims Innocence Against Manipulation Allegations - CoinTribune","type":"news_article","credibility":2}],"severity":"medium"},{"content":"Bit.com the exchange was incorporated in the Seychelles, which provides a lighter-touch regulatory environment for crypto exchanges. As of the time of its closure, no enforcement actions from any major financial regulator — including the SEC, CFTC, FinCEN, or Singapore's MAS — have been publicly identified against Bit.com or Matrixport with respect to exchange operations. The exchange enforced geographic restrictions blocking users from the United States, Canada, Japan, and Singapore, which industry observers attribute to regulatory risk management rather than any specific license prohibition. The parent entity Matrixport (now BIT) holds a Major Payment Institution licence in Singapore, a FINMA licence in Switzerland as a Manager of Collective Assets, and regulatory approvals in Hong Kong, the United Kingdom, the United States, and Bhutan. These licenses pertain to the broader financial services group rather than to the now-closed Bit.com derivatives exchange specifically. The Seychelles registration placed Bit.com outside the scope of stringent regulatory oversight applicable to exchanges serving users in regulated markets.","heading":"Regulatory Status and Compliance","sources":[{"url":"https://www.globenewswire.com/news-release/2026/03/20/3259572/0/en/matrixport-rebrands-as-bit-in-strategic-repositioning.html","name":"Matrixport Rebrands as BIT in Strategic Repositioning - GlobeNewswire","type":"official","credibility":2},{"url":"https://firsttechspot.com/bit.com-crypto-exchange-review-2025-fees-features-risks","name":"BIT.com Crypto Exchange Review 2025 - FirstTechSpot","type":"research","credibility":3}],"severity":"medium"},{"content":"No publicly reported security breaches, hacks, or theft of user funds have been identified involving Bit.com during its operational period from 2020 to 2026. The exchange partnered with Fireblocks, Cactus Custody, and Copper.co for third-party custody, employed multi-signature wallet controls, mandatory two-factor authentication, and maintained an insurance fund. Third-party review aggregators assigned the exchange relatively low trust ratings — Traders Union reportedly assigned a risk rating of 2.61 out of 10 — citing concerns about geographic restrictions, inconsistent customer support during peak volatility periods, high leverage risks for retail participants, and the high volume thresholds required to access VIP rebates. Independent reviewer FXEmpire assigned a 2.7 out of 5.0 score as of mid-2025. User complaints identified in review aggregators centered on customer support latency during volatile markets rather than fund losses or withdrawal blocks. During the shutdown process, Bit.com issued warnings to users about third-party phishing and impersonation scams exploiting the migration period, but no reports of actual user fund losses due to exchange-side fraud have been found in verifiable sources.","heading":"Security and User Complaints","sources":[{"url":"https://tradersunion.com/brokers/crypto/view/bit.com/","name":"Bit.com Review 2026: Pros, Cons and Key Features - TradersUnion","type":"research","credibility":3},{"url":"https://www.fxempire.com/exchanges/bit","name":"BIT.com Review 2026 - FXEmpire","type":"research","credibility":2},{"url":"https://www.trustpilot.com/review/bit.com","name":"Bit.com Reviews - Trustpilot","type":"community_report","credibility":3},{"url":"https://www.cryptopolitan.com/bit-com-set-to-wind-down-operations/","name":"Crypto exchange Bit.com set to wind down operations - Cryptopolitan","type":"news_article","credibility":2}],"severity":"low"},{"content":"In January 2023, Matrixport cut approximately 10% of its workforce, with reductions concentrated in the marketing department. The company stated it continued to hire in compliance, legal, and product development during the same period. No reports of fraud, financial distress, or regulatory pressure were cited as causes for the layoffs; the reduction occurred against the backdrop of broader industry-wide headcount reductions following the 2022 crypto market downturn.","heading":"Workforce Reduction (2023)","sources":[{"url":"https://www.coindesk.com/business/2023/01/27/jihan-wus-matrixport-cuts-10-of-staff","name":"Jihan Wu's Matrixport Cuts 10% of Staff - CoinDesk","type":"news_article","credibility":1}],"severity":"low"}],"timeline":[{"date":"2019","event":"Matrixport founded in Singapore by Jihan Wu, formerly co-CEO of Bitmain Technologies","source":"The Block","source_url":"https://www.theblock.co/post/72970/matrixport-crypto-derivatives-exchange","date_original":"2019-01-01"},{"date":"2020-07","event":"Matrixport announces forthcoming launch of Bit.com, a dedicated crypto derivatives exchange","source":"Crowdfund Insider","source_url":"https://www.crowdfundinsider.com/2020/07/164643-singapore-based-digital-asset-firm-matrixport-to-launch-bit-com-a-crypto-derivatives-exchange/","date_original":"2020-07-01"},{"date":"2020-08-03","event":"Bit.com launches Bitcoin/USD perpetual swap","source":"Crowdfund Insider","source_url":"https://www.crowdfundinsider.com/2020/07/164643-singapore-based-digital-asset-firm-matrixport-to-launch-bit-com-a-crypto-derivatives-exchange/"},{"date":"2020-08-17","event":"Bit.com adds Bitcoin options, expanding its derivatives offering","source":"The Block","source_url":"https://www.theblock.co/post/74641/matrixport-exchange-bitcoin-options"},{"date":"2021-08","event":"Matrixport closes $100 million Series C at $1 billion valuation; investors include DST Global, Tiger Global, Lightspeed, Polychain, and Dragonfly Capital","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2022/11/25/jihan-wus-crypto-lender-matrixport-looks-to-raise-100m-at-15b-valuation","date_original":"2021-08-01"},{"date":"2023-01-27","event":"Matrixport cuts approximately 10% of staff, primarily in marketing, amid broader industry headcount reductions","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2023/01/27/jihan-wus-matrixport-cuts-10-of-staff"},{"date":"2024-01-03","event":"Matrixport research report predicts SEC will reject all spot Bitcoin ETF applications; Bitcoin drops approximately 8-10% following the report's circulation; allegations of market manipulation raised by community members; Matrixport denies intent, no regulatory action follows","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2024/01/03/what-caused-bitcoins-10-crash-matrixport-cramer-leverage"},{"date":"2024-01-10","event":"SEC approves multiple spot Bitcoin ETFs, rendering Matrixport's January 3 prediction incorrect","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2024/01/03/bitcoin-spot-etf-proposals-to-be-rejected-by-sec-matrixport"},{"date":"2025-12-27","event":"Bit.com announces phased shutdown, halts new user registrations, citing business restructuring; users directed to withdraw or migrate assets to Matrixport","source":"Cryptopolitan","source_url":"https://www.cryptopolitan.com/bit-com-set-to-wind-down-operations/"},{"date":"2026-01-31","event":"Bit.com terminates spot trading as part of phased shutdown","source":"Phemex News","source_url":"https://phemex.com/news/article/bitcom-to-cease-operations-by-march-31-2026-in-threephase-shutdown-49437"},{"date":"2026-03-20","event":"Matrixport rebrands as BIT, describing a strategic repositioning; the group manages over $6 billion in assets and holds licenses in Singapore, Switzerland, Hong Kong, the UK, the US, and Bhutan","source":"GlobeNewswire","source_url":"https://www.globenewswire.com/news-release/2026/03/20/3259572/0/en/matrixport-rebrands-as-bit-in-strategic-repositioning.html"},{"date":"2026-03-31","event":"Bit.com exchange completes full shutdown and ceases all operations","source":"BingX News","source_url":"https://bingx.com/en/news/post/bit-com-to-shut-down-from-dec-with-migration-ending-mar"}],"sources_used":[{"url":"https://www.theblock.co/post/72970/matrixport-crypto-derivatives-exchange","name":"Bitmain spin-off Matrixport is launching a crypto derivatives exchange - 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