BitMEX Faces 622 BTC Class Action Before September Shutdown

Key Insights

• BitMEX faces a proposed U.S. class action over 622.66 BTC in alleged customer losses.
• Plaintiffs seek the Bitcoin’s return, plus compensatory and punitive damages.
• The lawsuit arrived as BitMEX prepared to close its exchange on Sept. 23.

BitMEX faces a proposed U.S. class action over claims that its liquidation system caused two traders to lose 622.66 Bitcoin.

BKX Services Inc. and trader David Namdar filed the complaint on July 23. They brought the case before the U.S. District Court for the Southern District of New York.

The plaintiffs accused BitMEX and its founders of closing leveraged positions before traders exhausted their available collateral. They also alleged that the exchange retained excess Bitcoin through its insurance fund.

The claims remain unproven, and BitMEX had not publicly responded when reports emerged. The filing arrived as BitMEX confirmed plans to close its exchange operations in September.

BKX Services claims it lost at least 305.81 BTC through forced liquidations on BitMEX. Namdar alleges that the platform liquidated positions that held more than 316.85 BTC. Together, the plaintiffs seek the return of 622.66 BTC, along with compensatory and punitive damages.

The complaint claims BitMEX closed customer positions while the remaining collateral still exceeded the losses linked to those trades. According to the filing, the exchange moved the excess Bitcoin into its insurance fund instead of returning it to affected customers. The plaintiffs argue that this process allowed BitMEX to keep Bitcoin left after forced liquidations.

BitMEX allowed traders to open leveraged positions worth up to 100 times their collateral. Such positions carried a high liquidation risk when the market moved against traders. The lawsuit does not challenge leveraged trading itself. Instead, it focuses on how BitMEX handled collateral after closing customer positions.

The proposed class action seeks to represent eligible U.S. customers who traded Bitcoin perpetual swaps from July 23, 2018. The complaint also refers to an earlier case filed in 2020 by Brett Messieh and other traders. That lawsuit raised similar claims but ended without prejudice in June 2025, leaving room for related claims.

The plaintiffs also accuse BitMEX of giving its internal trading operation access to private customer data. They claim the trading desk could view information that ordinary users could not access. The complaint alleges that the desk used this information while trading against customers during volatile market conditions.

Court filings further claim that BitMEX’s internal desk continued trading during server outages. At the same time, customers allegedly could not close positions, reduce exposure or add collateral. The plaintiffs argue that these conditions increased liquidation risks for users who could not manage their open trades.

According to the crypto news, BitMEX designed a system that generated revenue from customer liquidations. The exchange gained financially when liquidated collateral entered its insurance fund.

The legal filing arrived on the same day BitMEX announced plans to close its exchange business. HDR Global Trading, the company behind the platform, said exchange operations will end at 04:00 UTC on September 23. BitMEX has already stopped accepting new customer registrations.

From August 26, traders will no longer open new positions. They may only reduce or close existing trades. BitMEX plans to close outstanding positions gradually before the final deadline. The platform will automatically liquidate any positions that remain open when exchange services end.

Customers will retain access to their accounts after the shutdown for withdrawals, transaction records, and wallet balances. The crypto news said verified users who leave funds on the platform will face a monthly charge equal to $50 or an annual rate of 1%, whichever amount is higher.

BitMEX announced the closure after several leadership changes. The company replaced former chief executive Stephan Lutz earlier in July. Chief financial officer Ina Steiner and chief growth officer Raphael Polansky also left during the restructuring.

Former chief operating officer and global general counsel Peter Wilkinson took over as chief executive. The management changes followed reports that BitMEX had explored a possible sale.

BitMEX has faced several regulatory and management challenges since 2020. Founders Arthur Hayes, Ben Delo and Samuel Reed stepped down after U.S. authorities accused the exchange of failing to maintain proper anti-money laundering controls. The company later pleaded guilty to related charges.

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