BitMEX is facing a proposed class action lawsuit alleging it engineered unfair liquidations and withheld 622.66 Bitcoin worth $40.7 million. The suit was filed July 23 in New York federal court on the same day the exchange announced it would close on Sept. 23.
The complaint was brought by BKX Services and David Namdar in the U.S. District Court for the Southern District of New York. BKX Services claims losses of at least 305.81 Bitcoin through forced liquidations, while Namdar alleges more than 316.85 Bitcoin in losses.
Plaintiffs say BitMEX and co-founders Arthur Hayes, Ben Delo and Samuel Reed designed a system to retain customer collateral and move remaining Bitcoin to an insurance fund. They also allege an internal trading desk accessed private customer data and traded during server freezes that blocked other users.
The exchange allowed up to 100 times leverage. The suit seeks return of the Bitcoin, compensatory damages and punitive damages, and asks the court to certify a class of U.S. customers who traded Bitcoin swaps since July 23, 2018.
BitMEX said the closure follows a strategic review and recent management changes that included the departure of its CEO, CFO and head of growth. Peter Wilkinson is now CEO. A similar 2020 class action was closed in June 2025 without a ruling on the liquidation claims.
