BitMEX faces proposed class-action suit for theft, insider trading as crypto exchange shuts down
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BitMEX, a crypto derivatives exchange known for pioneering the perpetual swap, is facing a proposed class-action lawsuit filed by BKX Services and David Namdar in the U.S. District Court for the Southern District of New York. The lawsuit, filed on July 23, 2026, alleges unfair liquidations and the withholding of collateral, involving a total of 622.66 BTC (approximately $40.7 million) claimed as owed to the plaintiffs. BKX Services alleges losses of at least 305.81 BTC through forced liquidations, while Namdar claims losses exceeding 316.85 BTC.
The complaint accuses BitMEX and its co-founders Arthur Hayes, Ben Delo, and Samuel Reed of designing a system that retained customer collateral and transferred excess bitcoin to the platform’s insurance fund. It also alleges that an internal trading desk had access to private customer data and was able to trade during server freezes, periods during which regular users could not close positions. The plaintiffs argue that BitMEX liquidated their positions even when their collateral was still worth roughly twice the amount of their losses and withheld the remaining balances.
The lawsuit names BitMEX’s parent company HDR Global Trading, several affiliates, and the co-founders as respondents. It seeks to represent all U.S. customers who purchased BitMEX bitcoin swap products since July 23, 2018, and aims for the return of the withheld bitcoin, compensatory damages, and punitive damages. A judge's approval will be required for the complaint to proceed as a class-action suit.
The legal filing coincides with BitMEX announcing it will cease operations on September 23, 2026, ending its 11-year tenure as a crypto exchange. This announcement followed a strategic review by HDR and a management reshuffle that saw the departure of key executives, including the CEO, CFO, and head of growth, with general counsel Peter Wilkinson stepping in as CEO. CoinDesk reached out to BitMEX and other defendants for comment but had not received a response by the time of publication.