BitMEX Faces Class Action Lawsuit Over Alleged Manipulation of Liquidation Mechanism

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BTC news today: BKX Services Inc. and David Namdar filed a class-action lawsuit against BitMEX on July 24 in the U.S. District Court for the Southern District of New York, accusing the exchange of manipulating liquidation mechanisms to profit from customer Bitcoin. The plaintiffs claim losses totaling 622.66 BTC and are seeking compensation for U.S. users. On the same day, BitMEX’s parent company announced it would shut down on September 23, causing the BMEX token to drop nearly 90%. BTC update: This legal action adds to the exchange’s ongoing challenges.

According to Cointelegraph, BKX Services Inc. and David Namdar filed a class-action lawsuit against BitMEX on July 24 in the U.S. District Court for the Southern District of New York, alleging that BitMEX’s internal trading team manipulated the liquidation mechanism to illegally acquire customers’ Bitcoin. The two plaintiffs collectively lost 622.66 BTC, with BKX losing at least 305.81 BTC and Namdar losing over 316.85 BTC. The plaintiffs are seeking the return of the Bitcoin and damages, representing all U.S. users who purchased BTC swap products since July 23, 2018. On the same day, BitMEX’s parent company, HDR Global Trading, announced it would cease operations on September 23, causing the BMEX token price to plummet by approximately 90%.

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