BitMEX Proposes Class-Action Lawsuit Alleges Theft and Insider Trading Amid Shutdown

BitMEX, a crypto derivatives exchange known for popularizing the perpetual swap, is facing a proposed class-action lawsuit filed in the U.S. District Court for the Southern District of New York. The suit, brought by BKX Services and David Namdar, alleges that BitMEX engaged in insider trading and has retained customer collateral unjustly. Specifically, the plaintiffs claim that BitMEX owes them a total of 622.66 Bitcoin (worth approximately $40.7 million) due to unfair liquidations.

The lawsuit contends that BitMEX designed its system to improperly retain customer collateral. It also alleges that an internal trading desk accessed private user data during periods when the system experienced freezes, which prevented users from executing trades. BKX Services reported losing at least 305.81 Bitcoin through forced liquidations, while Namdar stated that his losses exceeded 316.85 Bitcoin.

These allegations come as BitMEX announces it will shut down its operations on September 23, 2026, after 11 years in the derivatives trading space. This development follows a recent management review and an internal shake-up that saw the departures of key executives, including the CEO, chief financial officer, and head of growth. Now, Peter Wilkinson, the general counsel, has taken over as the new CEO.

The lawsuit seeks to represent U.S. customers who utilized BitMEX's Bitcoin swap products starting from July 23, 2018, and requests returns of the withheld Bitcoin, along with compensatory and punitive damages. The plaintiffs allege that BitMEX liquidated their positions while their collateral still had considerable value, claiming that it was worth approximately twice the reported losses at the time of liquidation.

Prior legal issues surround BitMEX, as similar claims had previously been filed in a class-action lawsuit that was closed in June 2025 without any resolution regarding liquidation allegations. The current lawsuit specifically names BitMEX's co-founders Arthur Hayes, Ben Delo, and Samuel Reed, as well as its parent company, HDR Global Trading, among the defendants.

As BitMEX gears up for its closure, attention may turn to whether the plaintiffs secure permission to proceed with their class action. This ongoing legal challenge highlights the ongoing scrutiny facing cryptocurrency exchanges regarding their operational practices and user protections.