BitMEX Faces 622 BTC Class Action As Exchange Prepares To…
A proposed class action seeks return of more than 622 BTC from BitMEX, alleging its liquidation system was designed to profit from forced liquidations. The exchange separately announced it will shut down on September 23.
BitMEX is facing a proposed class action in the United States that demands the return of over 622 BTC (approximately $40.39 million at press time) from two traders who claim the derivatives exchange built its liquidation system to profit from forced liquidations. The lawsuit was filed on the same day BitMEX announced plans to shut down its platform in September, although the dispute stems from trading activity dating back to 2018.
The complaint was filed on Thursday in the U.S. District Court for the Southern District of New York by BKX Services Inc. and trader David Namdar against HDR Global Trading Limited and affiliated BitMEX entities. BKX claims it lost no less than 305.81 BTC, while Namdar alleges losses exceeding 316.85 BTC. The plaintiffs are seeking return of the Bitcoin they say was wrongfully liquidated, along with compensatory and punitive damages. They also asked the court to certify a class comprising U.S. customers who traded Bitcoin perpetual swap contracts on BitMEX in transactions dating back to July 23, 2018.
The plaintiffs argue that “BitMEX deliberately developed a system that profited from the liquidations,” contending that the alleged misconduct stemmed from the platform’s design rather than isolated trading losses. According to the complaint, BitMEX’s internal trading desk had access to confidential customer information and continued executing trades during server disruptions that allegedly prevented customers from managing their own positions. The lawsuit references a 2020 class action filed by Brett Messieh and other traders, which raised similar allegations under the Commodity Exchange Act; that case was voluntarily dismissed without prejudice on June 30, 2025, allowing similar claims to be brought anew.
On the same day the lawsuit was filed, HDR Global Trading announced that BitMEX would cease operations after more than 11 years. The company said its board approved the decision following a review of the business and broader market conditions. BitMEX has stopped accepting new account registrations and advised existing customers to close open positions and withdraw their funds before trading ends. Users can no longer open new positions from 4:00 a.m. UTC on August 26, and after that deadline traders may only reduce or close existing positions. Any positions remaining open when trading operations end on September 23 will be closed automatically.
Customers who have completed identity verification but leave assets on the platform after operations cease may be charged a monthly account maintenance fee of $50 or 1% per annum of their remaining balance, whichever is greater, according to the company’s shutdown notice. BitMEX’s BMEX utility token fell sharply following the shutdown announcement, according to market data.
Source: FinanceFeeds