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BitMEX faces class action seeking 622.66 BTC as it shuts down Sept. 23

The lawsuit, filed July 23 in New York federal court, alleges BitMEX routed excess liquidation collateral into its insurance fund rather than returning it, while also claiming an internal trading desk had access to customer positions.

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BitMEX and co-founders, including Arthur Hayes, were hit with a proposed class action in New York federal court that accuses the exchange of keeping customer collateral after liquidations and operating an internal trading desk with access to confidential position information, The Defiant reports. The complaint was filed July 23, the same day BitMEX said it will close after 11 years on Sept. 23. Plaintiffs BKX Services Inc. and David Namdar allege that their leveraged positions were auto-liquidated while remaining collateral was worth roughly twice their losses, and that the excess was routed into the exchange's insurance fund instead of being returned. The plaintiffs seek the return of 622.66 BTC, about $40 million at current prices per CoinGecko, plus compensatory and punitive damages. The suit asserts two counts, replevin to seek return of bitcoin in kind and fraud. The filing describes an internal “Insider Trading Desk,” largely run by former business development head Gregory Dwyer out of Manhattan, and alleges it used software to identify price moves that would liquidate the most customers, while trading allegedly continued during server freezes that locked out other users. The proposed class covers US customers of BitMEX's BTC swap products going back to July 23, 2018, and revives similar claims from a prior 2020 class action that was dismissed without prejudice in June 2025.

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