BitMEX Faces Class Action Lawsuit Over $622.66M in BTC Liquidations

According to Odaily, BitMEX has been hit with a proposed class action lawsuit filed in U.S. District Court for the Southern District of New York. Plaintiffs BKX Services Inc. and David Namdar claim combined losses of 622.66 BTC in forced liquidations on the platform, with BKX reporting losses of at least 305.81 BTC and Namdar over 316.85 BTC.

The complaint alleges BitMEX's internal trading desk had access to customer private information and continued trading during server freezes when regular users could not access their accounts. Plaintiffs also claim the platform allowed up to 100x leverage and automatically liquidated positions, with remaining BTC transferred to the platform's insurance fund. The lawsuit seeks return of allegedly withheld Bitcoin and compensatory and punitive damages. Separately, BitMEX announced on the same day it will cease operations on September 23 following a strategic review by owner HDR Global Trading.