BitMEX is going through a category motion lawsuit accusing the crypto derivatives platform of fraudulently engineering buyer liquidations to grab merchants’ Bitcoin collateral.
On Thursday, BKX Companies Inc. and David Namdar filed the criticism within the US District Courtroom for the Southern District of New York. The plaintiffs allege they misplaced a mixed 622.66 BTC via pressured liquidations on BitMEX, with BKX claiming losses of a minimum of 305.81 BTC and Namdar alleging losses exceeding 316.85 BTC.
The lawsuit revives long-running allegations in regards to the platform’s inside buying and selling operations and liquidation engine and comes simply because the trade is getting ready to shut in September.
“BitMEX intentionally developed a system that profited from the liquidations,” the plaintiffs alleged. The criticism claimed that an inside buying and selling desk had entry to personal buyer data and will proceed buying and selling throughout server freezes that prevented atypical customers from accessing or closing their positions.
Cointelegraph reached out to BitMEX for remark however didn’t obtain a response earlier than publication.
BitMEX customers search Bitcoin return beneath fraud claims
In line with the submitting, BitMEX allowed clients to make use of leverage of as much as 100 occasions their collateral, then routinely liquidated positions whereas collateral was nonetheless allegedly value twice the losses incurred.
The remaining BTC was positioned into the platform’s insurance coverage fund, permitting BitMEX to revenue from pressured liquidations, the plaintiffs declare.
The plaintiffs are in search of the return of the allegedly withheld Bitcoin in addition to compensatory and punitive damages. They purpose to symbolize US clients who bought BTC swap merchandise in transactions relationship again to July 23, 2018.
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The criticism additionally pointed to a category motion filed in 2020 by Brett Messieh and different merchants alleging related conduct. That case, which introduced claims beneath the Commodity Trade Act, was voluntarily dismissed with out prejudice on June 30, 2025.
Lawsuit lands as BitMEX proclaims shutdown
The proposed class motion lawsuit was filed on the identical day BitMEX introduced that it might shut after 11 years of operation.
BitMEX stated it might cease offering providers on Sept. 23 after a strategic assessment by its proprietor, HDR International Buying and selling.
It has stopped accepting new registrations and plans to forestall customers from opening new positions beginning on Aug. 26. The announcement was adopted by a roughly 90% plunge in BitMEX’s BMEX utility token.
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