ChainThink reports that on July 24, according to Cointelegraph, BitMEX has been named in a class-action lawsuit filed by BKX Services Inc. and David Namdar in the U.S. District Court for the Southern District of New York. The plaintiffs allege that BitMEX’s internal trading team exploited privileged access during a server freeze to manipulate the forced liquidation mechanism and unlawfully seize customers’ Bitcoin collateral.
The lawsuit alleges that the two plaintiffs collectively lost 622.66 BTC, with BKX losing at least 305.81 BTC and David Namdar losing over 316.85 BTC.
The plaintiff seeks the return of seized bitcoins and claims compensatory and punitive damages. This class action is intended to represent U.S. users who purchased BTC swap products since July 23.
On the same day, HDR Global Trading, the parent company of BitMEX, announced it would cease operations on September 23 and had already stopped accepting new user registrations; following the announcement, the BMEX token price dropped by approximately 90%.