On July 23, BitMEX declared it would cease operations on September 23, 2026.
Just hours later, a class-action lawsuit was filed in the US District Court for the Southern District of New York.
The plaintiffs, BKX Services Inc. and David Namdar, accuse BitMEX’s parent company HDR Global Trading Limited and the founders Arthur Hayes, Ben Delo, and Samuel Reed of unfair practices.
At the heart of the complaint is the claim that BitMEX’s liquidation system was designed not only to protect the platform but also to systematically siphon off users’ funds.
The suit states that 622.66 BTC, roughly $40.7 million, was diverted into BitMEX’s insurance fund during liquidations.
According to the complaint, when traders were liquidated, any leftover collateral did not return to them but rather increased the exchange’s reserves.
Another serious allegation suggests insider trading: some BitMEX traders allegedly used private user data during server outages to gain an unfair advantage.
The class includes all US customers who traded BTC swap products on BitMEX from July 23, 2018, onward.
BitMEX’s rise and decline spanned over a decade. Founded in 2014, it quickly became dominant in crypto derivatives, popularizing bitcoin perpetual swaps with use up to 100x.
In 2020, US authorities charged its top executives with violating anti-money laundering laws. Hayes pleaded guilty and received house arrest.
A previous lawsuit targeting similar liquidation practices ended in June 2025 without addressing those claims.
Recently, BitMEX underwent leadership changes, appointing a new CEO shortly before announcing its shutdown.
This article is for informational purposes and not financial advice.
