BitMEX Sued for Allegedly Profiting From Customer Bitcoin Liquidations
BKX Services Inc. and trader David Namdar say BitMEX forced liquidations to keep 622.66 Bitcoin and seeks damages as the exchange shuts down.
- On Thursday, BKX Services and David Namdar filed a class-action lawsuit against BitMEX in the U.S. District Court for the Southern District of New York, alleging the exchange stole 622.66 BTC worth $40.7 million.
- Plaintiffs allege BitMEX and co-founders Arthur Hayes, Ben Delo, and Samuel Reed designed a system to profit from forced liquidations, retaining customer collateral instead of returning it during market stress.
- The complaint claims an internal trading desk accessed private customer information and traded during server freezes that prevented other users from closing positions, reviving allegations from a 2020 lawsuit dismissed in June 2025.
- This legal action coincides with HDR Global Trading's decision to close BitMEX on September 23, following a management restructuring that saw CEO Stephan Lutz replaced by Peter Wilkinson earlier this month.
- BitMEX will progressively close open positions before September 23, while the exchange's BMEX utility token fell roughly 90% following the announcement and users face monthly fees of $50 or 1% if funds remain.
13 Articles
13 Articles
BitMEX sued for allegedly profiting from customer Bitcoin liquidations
BitMEX has been hit with a proposed class action lawsuit in the United States accusing the cryptocurrency derivatives exchange of engineering customer liquidations that allegedly allowed it to retain hundreds of Bitcoin before its planned September shutdown. Court filings in…
The BitMEX crypto derivatives platform faces a class action for 622.66 bitcoins, filed on July 24, 2026 in the Federal Court of New York. The plaintiffs accuse the exchange of having orchestrated fraudulent liquidations to seize the bitcoins of its clients. This legal action falls on the specific day when BitMEX announces that it is [...] The article Does BitMEX's closing hide a much more explosive file appeared first on Cointribune.
BitMEX Faces 622 BTC Class Action Before September Shutdown
Key Insights BitMEX faces a proposed U.S. class action over 622.66 BTC in alleged customer losses. Plaintiffs seek the Bitcoin’s return, plus compensatory and punitive damages. The lawsuit arrived as BitMEX prepared to close its exchange on Sept. 23. BitMEX faces a proposed U.S. class action over claims that its liquidation system caused two traders to lose 622.66 Bitcoin. BKX Services Inc. and trader David Namdar filed the complaint on July 23…
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