Phemex review
Phemex is a centralized cryptocurrency exchange founded in November 2019 by Jack Tao, a former Morgan Stanley executive who also worked on Bybit's early development, alongside several other ex-Morgan Stanley colleagues. It combines spot trading, high-leverage perpetual futures (up to 100x), copy trading, trading bots, margin, P2P and a Phemex Earn savings/staking suite, plus tokenized exposure to some traditional assets. The exchange is registered offshore rather than under a major-market license, holds only a narrow US Money Services Business registration focused on anti-money-laundering, and suffered a hot-wallet hack of roughly $70 million in January 2025 that researchers linked to a North Korea-affiliated group. CoinGecko scores it 7/10 on trust; CoinCodex does not label it a trusted exchange.
Phemex key facts
- Website: phemex.com
- Category: Centralized cryptocurrency exchange (CEX)
- Founded: 2019, by Jack Tao (ex-Morgan Stanley)
- Headquarters: Disputed / offshore; registered in Samoa or the British Virgin Islands depending on source
- Regulatory status: US Money Services Business (MSB) registration only, an AML-focused framework, not a full trading license; no major-market authorization
- Products: Spot, USDT-M/Coin-M perpetual futures to 100x, margin, copy trading, trading bots, P2P, Earn/staking, Launchpool
- Trading fees: Spot: 0.10%/0.10% maker/taker at base tier, down to 0%/0.04% at top VIP tier; futures: 0.01%/0.06% down to 0%/0.03%
- Supported assets: 460+ cryptocurrencies across 480+ trading pairs (CoinGecko)
- Notable incident: January 2025 hot-wallet hack of roughly $70 million; researchers suggested a North Korea-linked group
- FYI Score: 76.2/100 (ranked #35 of the 48 crypto exchanges we track)
Trading fees
- Spot trading: 0.10% maker / 0.10% taker at the base VIP0 tier, improving to 0.09%/0.10% at VIP1 and down to 0%/0.04% at the top Star VIP tier
- Futures/perpetuals: 0.01% maker / 0.06% taker at VIP0, improving through six tiers to 0%/0.03% at Star VIP
- VIP tier is set by either 30-day trading volume or asset balance, whichever is higher
- Zero-fee crypto deposits; withdrawal fees vary by asset and network
Supported assets
- 460+ cryptocurrencies listed across roughly 480-500 spot trading pairs (figures vary slightly by tracker: CoinGecko, CoinMarketCap, CoinCodex)
- 500+ futures trading pairs, per CoinMarketCap
- 8 stablecoins supported for trading, including USDT, USDC and PAXG
- 24-hour spot trading volume in the high hundreds of millions of dollars (roughly $670-690M per CoinGecko/CoinMarketCap)
Products
- Spot trading, margin trading and USDT-margined/coin-margined perpetual futures with leverage up to 100x
- Copy trading and automated trading bots (Grid, Martingale, Signal strategies)
- Phemex Earn: fixed and flexible savings, staking, and Launchpool token sales
- P2P trading, a crypto lending protocol, and tokenized access to some traditional-finance instruments (stocks, metals, indices)
Security & regulation
- Registered offshore; holds a narrow US MSB registration (AML-focused) rather than a full exchange license in any major jurisdiction
- Publishes 100% Proof-of-Reserves with Merkle-tree verification
- CoinGecko trust score of 7/10; CoinCodex explicitly does not classify Phemex as a trusted exchange
- Suffered a hot-wallet breach of roughly $70 million in January 2025, later linked by researchers to a suspected North Korea-affiliated hacking group; deposits and withdrawals were suspended and later restored, with Phemex committing to compensate affected users
Markets
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Who Phemex is for
Phemex suits traders who want high-leverage derivatives, copy trading and bot tools in one account and who are comfortable with an offshore, lightly-regulated platform that has disclosed a significant hack. It is not a fit for users who prioritize licensed, major-market oversight or FDIC/FSCS-style protections.
Pros
- Founding team has direct institutional trading-infrastructure background (ex-Morgan Stanley, early Bybit involvement)
- Broad product range in one account: spot, high-leverage derivatives, copy trading, bots, Earn/staking and P2P
- Fee schedule that improves meaningfully at higher VIP tiers, including maker rebates at the top futures tier
- Publishes Proof-of-Reserves attestations
Cons
- No single disclosed headquarters and no license from a major regulator; registration is offshore (reported as Samoa or the British Virgin Islands depending on source) and its only US registration is a narrow, AML-focused MSB status, not a trading license
- Suffered a hot-wallet hack of roughly $70 million in January 2025, with security researchers pointing to a possible North Korea-linked group behind the exploit
- CoinCodex does not classify Phemex as a trusted exchange, and its CoinGecko trust score (7/10) trails top-tier licensed venues
- Up to 100x leverage on perpetual futures carries substantial liquidation risk for retail users
- Smaller market share (roughly 0.1% of tracked exchange volume per CoinCodex) than top-tier exchanges, meaning thinner liquidity on less-popular pairs
Phemex FAQ
Is Phemex regulated?
Only narrowly. Phemex holds a US Money Services Business (MSB) registration, which is an anti-money-laundering registration with basic supervision, not a full trading or exchange license. It is not authorized by a major regulator such as the FCA or a US securities/commodities regulator, and its registered entity is offshore (reported as Samoa or the British Virgin Islands depending on the source).
Is Phemex safe to use?
Phemex publishes Proof-of-Reserves attestations and holds most assets in cold storage, but it suffered a hot-wallet breach of roughly $70 million in January 2025 that security researchers linked to a suspected North Korea-affiliated hacking group. Deposits and withdrawals were suspended and later restored, and Phemex said it would compensate affected users. CoinGecko rates it 7/10 on trust; CoinCodex does not classify it as a trusted exchange.
What are Phemex's trading fees?
Base-tier spot fees are 0.10% maker and 0.10% taker, falling to 0% maker / 0.04% taker at the top Star VIP tier. Futures/perpetual fees start at 0.01% maker / 0.06% taker and fall to 0% maker / 0.03% taker at the top tier. VIP tier is determined by 30-day trading volume or account asset balance.
Who founded Phemex?
Phemex was founded in November 2019 by Jack Tao, who spent over a decade at Morgan Stanley building algorithmic trading infrastructure and was involved in Bybit's early development, along with several other former Morgan Stanley colleagues.
Compare Phemex with other crypto exchanges
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