BitMEX hit with 623 BTC lawsuit as exchange shuts down
BitMEX hit with 623 BTC in alleged losses under a proposed New York class action filed the same day the exchange announced its shutdown, with plaintiffs accusing the platform of engineering forced liquidations via privileged trading access and server freezes. The complaint, tracked in our Fintech & Crypto Alerts hub, lands as the long-running derivatives venue prepares to exit.
Key Takeaways
- BKX Services Inc. and David Namdar filed a proposed class action in the Southern District of New York seeking nearly 623 BTC plus damages.
- Plaintiffs allege an internal desk traded on private data and during server freezes that locked out customers.
- The suit landed the same day BitMEX said it will stop exchange services on Sept. 23, 2026.
- BitMEX is accelerating July delistings and did not respond to a request for comment before publication.
What are plaintiffs alleging against BitMEX?
According to Cointelegraph, BitMEX faces accusations that it fraudulently engineered customer liquidations to seize traders’ Bitcoin collateral.
BKX claims losses of at least 305.81 BTC, while Namdar alleges losses exceeding 316.85 BTC, for a combined 622.66 BTC. The filing says BitMEX allowed leverage of up to 100x, then automatically liquidated positions while collateral was still allegedly worth twice the losses incurred, with remaining BTC placed into the insurance fund.
“BitMEX deliberately developed a system that profited from the liquidations,” the plaintiffs alleged. They say an internal trading desk had access to private customer information and could keep trading during server freezes that blocked ordinary users from accessing or closing positions.
Why does the lawsuit’s timing matter?
The proposed class action was filed on the same day BitMEX announced it would close after 11 years. Owner HDR Global Trading decided to shut the exchange after a strategic review. Services are set to stop on Sept. 23, 2026, at 4:00 am UTC.
BitMEX has already stopped new account registrations and plans to block new positions from Aug. 26. The BMEX utility token plunged roughly 90% after the shutdown news. Cointelegraph said BitMEX did not respond before publication.
What damages and class claims are sought?
Plaintiffs seek return of the allegedly withheld Bitcoin plus compensatory and punitive damages. They aim to represent US customers who bought BTC swap products in transactions dating back to July 23, 2018.
The complaint also cites a 2020 class action by Brett Messieh and others under the Commodity Exchange Act that was voluntarily dismissed without prejudice on June 30, 2025.
How is BitMEX winding down its markets?
As the legal fight begins, BitMEX is also clearing markets. Per Cointelegraph’s delisting report, the exchange will have removed 65 derivative contracts and trading pairs in July, versus just 19 across the first six months of the year, citing insufficient trading interest and the planned closure.
Early July saw 21 derivative delistings, followed by nine spot pairs, then another 35 derivatives queued on Thursday. Restructuring adviser Roshan Dharia told Cointelegraph the exit reflects pressure on mid-sized centralized exchanges as liquidity concentrates with the largest players and compliance costs rise.