Crypto derivatives exchange BitMEX faces a proposed class-action suit alleging it stole customer bitcoin through forced liquidations and ran an internal desk with access to private user data. Plaintiffs BKX Services and David Namdar say they are owed 622.66 BTC ($40.7 million) and filed on the same day BitMEX confirmed it will shut down on Sept. 23.
BitMEX faces a proposed class-action suit alleging theft of bitcoin and insider trading, filed the same day the exchange that invented the perpetual swap confirmed it would close in three months. BKX Services and David Namdar lodged the complaint in the U.S. District Court for the Southern District of New York.
Inside the liquidation claims
BKX says it lost at least 305.81 BTC through forced liquidations, while Namdar alleges losses of more than 316.85 BTC. Together they claim they are owed 622.66 BTC, or $40.7 million.
The complaint alleges BitMEX and co-founders Arthur Hayes, Ben Delo and Samuel Reed designed a system to retain customer collateral and move the remaining bitcoin to the platform’s insurance fund. It also says an internal trading desk kept trading during server freezes that stopped other users from closing positions, using access to private customer data. The plaintiffs alleged BitMEX “deliberately developed a system that profited from the liquidations”.
BitMEX let traders borrow up to 100 times their collateral using leverage. The plaintiffs say the platform liquidated their positions while the collateral was still worth roughly twice the losses, then withheld the balance.
BitMEX rejects the suit as it winds down
The suit names parent company HDR Global Trading, several affiliates and the co-founders as respondents. Similar allegations featured in a 2020 class-action case that closed in June 2025 without a ruling on the liquidation claims.
BKX and Namdar want to represent U.S. customers who bought BitMEX bitcoin swap products from July 23, 2018, and are seeking the bitcoin’s return plus compensatory and punitive damages. A judge must still rule on whether the case can proceed as a class action.
BitMEX has denied the claims and said it would defend against what it called an opportunistic suit with no basis. The exchange has closed registrations and will bar new positions from Aug. 26 before ending all services on Sept. 23. News of the shutdown had already sent its BMEX token down nearly 90%.
Trading involves risk.
Risk Disclaimer
