BitMEX Hit With Class Action Claiming 622.66 BTC Losses as Parent Announces September Shutdown
AI Market Summary
A class action in SDNY alleges BitMEX's internal trading desk exploited a server freeze to manipulate liquidations and seize customer BTC collateral, seeking restitution and punitive damages. The lawsuit, alongside HDR Global's announced BitMEX shutdown and the reported ~90% BMEX drawdown, elevates counterparty and venue risk perceptions. Near term, this can pressure risk appetite and liquidity across crypto derivatives activity.
Impact level
● Medium
Affected assets
BTC/USDT+0.02%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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ChainThink reported on July 24, citing Cointelegraph, that cryptocurrency derivatives exchange BitMEX has been named in a class action filed in the U.S. District Court for the Southern District of New York by BKX Services Inc. and David Namdar.
The complaint alleges BitMEX's internal trading desk used privileged access during a server freeze to game the platform's forced liquidation process and improperly take customers' Bitcoin collateral. The plaintiffs say they lost a combined 622.66 BTC, including at least 305.81 BTC attributed to BKX and more than 316.85 BTC to Namdar.
The suit seeks the return of the allegedly seized bitcoins, along with compensatory and punitive damages. It is positioned to represent U.S. users who have purchased BTC swap products since July 23.
Also on July 24, HDR Global Trading, BitMEX's parent company, said it will cease operations on September 23 and has already stopped accepting new user registrations. Following the announcement, the BMEX token fell about 90%.
