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BitMEX faces class-action claims over collateral and insider trading
The proposed suit, filed in New York federal court, alleges plaintiffs lost a combined 622.7 BTC tied to forced liquidations, as BitMEX prepares to stop operations on Sept. 23.
CoinDesk reports BitMEX is facing a proposed class-action lawsuit from BKX Services and David Namdar, who allege unfair liquidations and the withholding of customer collateral. The complaint seeks representation for U.S. customers who bought BitMEX bitcoin swap products from July 23, 2018.
According to the filing, plaintiffs allege total losses of 622.66 BTC, or $40.7 million, including at least 305.81 BTC attributed by BKX to forced liquidations and losses of more than 316.85 BTC alleged by Namdar. The lawsuit also alleges BitMEX designed a system meant to retain customer collateral and then transfer remaining bitcoin to its insurance fund.
The complaint says an internal trading desk accessed private user data and could continue trading during server freezes that prevented other users from closing positions. It also alleges BitMEX liquidated positions before collateral values fell below levels that the plaintiffs say would have covered the losses.
The timing of the suit follows BitMEXs announcement that it will cease operations on Sept. 23, ending its 11-year run as a crypto derivatives exchange. CoinDesk notes similar claims were raised in a 2020 class-action case that was closed in June 2025 without a ruling on the liquidation allegations.
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