BitMEX, a crypto derivatives platform, faces a proposed class action lawsuit accusing it of withholding 622.66 BTC taken from customers during forced liquidations. The complaint, filed in the U.S. District Court for the Southern District of New York, challenges how BitMEX managed the proceeds from liquidated leveraged positions.
Legal Claims Focus on Retained Liquidation Funds
The lawsuit, titled BKX Services Inc. et al. v. HDR Global Trading Limited et al., targets HDR Global Trading Limited, the company operating BitMEX. Plaintiffs, including BKX Services Inc., argue that the exchange improperly kept bitcoin value that belonged to traders after their positions were forcibly closed. This distinction separates ordinary market losses from alleged misconduct, prompting the legal action.
The central figure of 622.66 BTC, equivalent to nearly 623 bitcoins, represents the amount plaintiffs claim BitMEX retained rather than returning to users. According to the complaint, this is not a routine trading loss but an issue of withheld funds that should have gone back to customers.
Proposed class actions serve as a mechanism for one or more plaintiffs to represent a larger group affected in a similar way, though the class has yet to be officially certified by the court.
