BitMEX hit with class action lawsuit over alleged liquidation schemes

Plaintiffs BKX Services Inc. and trader David Namdar claim they lost a combined 622.66 BTC through the platform’s liquidation system. The complaint alleges that the exchange triggered forced liquidations before a user's collateral was fully exhausted, diverting the excess funds into its own insurance pool. According to the filing, an internal trading desk allegedly utilized non-public customer data to gain an unfair advantage, maintaining trading activity even during server outages when ordinary users were locked out of their accounts.

This legal action revives long-standing accusations regarding the exchange's structural integrity, following a similar 2020 lawsuit that was dismissed without prejudice earlier this year. The plaintiffs are seeking the return of their assets along with compensatory and punitive damages for U.S. customers who engaged in Bitcoin perpetual swaps dating back to July 2018.

The lawsuit coincides with a broader wind-down of the platform. HDR Global Trading, the exchange's operator, confirmed that all operations will conclude on September 23 following a strategic review. While the company maintains that its reserves remain sufficient to cover customer liabilities, the announcement triggered a 90% collapse in the value of the platform's native BMEX utility token. The closure follows a period of significant executive turnover, including the recent appointment of Peter Wilkinson as CEO, and arrives years after the exchange’s founders faced separate federal charges for failing to implement adequate anti-money laundering controls.