BitMEX Hit with Proposed Class-Action Lawsuit as It Prepares to Shut Down

BitMEX, a well-known crypto derivatives exchange, is facing a proposed class-action lawsuit alleging theft and insider trading, coinciding with its announcement to cease operations on September 23.

The lawsuit claims BitMEX created a system to withhold customer collateral and alleges unauthorized access to user data during technical issues.

In the complaint, BKX Services and David Namdar assert that BitMEX engaged in unfair liquidations and retained customer collateral. They claim a total of 622.66 BTC, valued at approximately $40.7 million, is owed to them due to these actions.

Filed in the U.S. District Court for the Southern District of New York, the lawsuit states that BKX Services suffered a loss of at least 305.81 BTC from forced liquidations, while Namdar's losses exceeded 316.85 BTC. This filing comes as BitMEX prepares to shut down after an 11-year run in the crypto space.

The lawsuit was submitted on July 23, the same day BitMEX announced its impending closure. This is not the first time such claims have surfaced; a similar class-action suit was dismissed in June 2025 without a ruling on the liquidation allegations.

The current complaint contends that BitMEX, along with co-founders Arthur Hayes, Ben Delo, and Samuel Reed, implemented a system designed to keep customer collateral and redirect any remaining bitcoin to the company’s insurance fund. It also alleges that an internal trading desk had access to private customer information and was able to execute trades even when server issues prevented other users from doing so.

BitMEX allowed traders to leverage positions up to 100 times their collateral, and the plaintiffs argue that their positions were liquidated while their collateral was still worth significantly more than their losses, with the balance being withheld.

The complaint names HDR Global Trading, the parent company, along with several affiliates and the co-founders as defendants. The plaintiffs seek to represent U.S. customers who purchased BitMEX bitcoin swap products since July 23, 2018, and are requesting the return of their bitcoin along with compensatory and punitive damages. A judge will need to approve the case as a class-action suit.

The announcement of BitMEX's closure follows a strategic review by HDR and a management overhaul, which included the departure of its CEO, CFO, and head of growth last month, with general counsel Peter Wilkinson stepping in as CEO.

CoinDesk reached out to BitMEX and the other defendants for comments but had not received a response by the time of publication.