According to Cointelegraph, on July 24, BitMEX was hit with a class-action lawsuit filed in the U.S. District Court for the Southern District of New York by BKX Services Inc. and David Namdar. The plaintiffs allege that BitMEX’s internal trading team exploited privileged access during a server freeze to illegally seize customer Bitcoin collateral by manipulating the forced liquidation mechanism. The two plaintiffs collectively lost 622.66 BTC (BKX lost at least 305.81 BTC, and Namdar lost over 316.85 BTC). The plaintiffs are seeking the return of the seized Bitcoin, as well as compensatory and punitive damages, on behalf of all U.S. users who purchased BTC derivatives since July 23, 2018. Notably, this lawsuit was filed on the same day BitMEX announced its shutdown—its parent company, HDR Global Trading, declared it would cease operations on September 23 and had already halted new user registrations. Following the announcement, the price of its BMEX token plummeted by approximately 90%.
BitMEX Faces $623 BTC Class Action Lawsuit on Closure Announcement Day
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Summary
On July 24, BitMEX was hit with a $623 BTC class action lawsuit in the U.S. District Court for the Southern District of New York by BKX Services Inc. and David Namdar. The plaintiffs allege that BitMEX’s internal team exploited privileged access during server freezes to manipulate liquidations and seize BTC collateral, resulting in a loss of 622.66 BTC. The lawsuit seeks the return of BTC and compensation for users who traded BTC swaps since 2018. The suit emerged as BitMEX announced its shutdown, with HDR Global Trading ceasing operations on September 23. Following the news, the BMEX token lost 90% of its value, as BTC price and BTC dominance became key focal points for traders monitoring the aftermath.
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