The crypto exchange that pioneered perpetual futures is now facing a class action lawsuit from investors accusing the platform of fraud and misappropriation of 622.66 BTC▲$62,630.00.
The lawsuit was filed in the Southern District of New York by BKX Services and investor David Namdar. BKX claims to have lost 305.81 BTC, Namdar 316.85 BTC.
Hot topic: Ethereum Is Approaching Cycle Bottom Relative to Bitcoin — What’s Next for ETH Price?
The plaintiffs allege that BitMEX deliberately created a system to profit from client liquidations, and that the exchange’s internal trading desk had access to confidential user data and could trade during server “freezes” when ordinary clients couldn’t manage positions.
The lawsuit was filed on the same day BitMEX announced it was shutting down after 11 years of operation.
Contents
What BitMEX Is Accused Of: Liquidation Manipulation and Client Data Access
According to the lawsuit, BitMEX allowed clients to use leverage up to 100x but then automatically liquidated positions even when collateral was twice the losses. The remaining funds were allegedly directed to the platform’s insurance fund, generating revenue for the company. The plaintiffs claim the exchange’s trading desk had access to confidential client position information and could continue trading during technical outages when users couldn’t access their accounts.
The lawsuit also alleges that BitMEX exploited its liquidation mechanism to profit at clients’ expense. Beyond returning the bitcoin or its equivalent value, the plaintiffs are seeking compensation for trading fees paid, lost profits, and punitive damages from the exchange’s founders–Arthur Hayes, Ben Delo, and Samuel Reed. The lawsuit covers US clients who traded bitcoin swaps from July 2018 onward.
Read more: Best Crypto Exchange Platforms in the US 2026 — Picks for Fees, Liquidity, and App Access
BitMEX’s Shutdown and Previous Legal Battles
The lawsuit was filed on the same day BitMEX announced its closure. The exchange will shut down on September 23, 2026, after 11 years. Owner HDR Global Trading cited a “strategic business review” as the reason. From August 26, users will be barred from opening new positions. The platform already conducted a mass delisting of crypto derivatives and spot pairs in July.
In March 2026, President Trump pardoned three BitMEX co-founders–Arthur Hayes, Benjamin Delo, and Samuel Reed. BitMEX denied the allegations, calling it “another opportunistic claim without merit.” A spokesperson said:
“BitMEX has faced many such claims over its history, and we have successfully defended against every one of them.”
Filing the lawsuit on the same day as the closure announcement adds legal uncertainty for users with funds on the platform. If the court finds the suit valid, it could affect the exchange’s shutdown process and user payouts.
Learn more: Why BitMEX Is Shutting Down — Top 3 Fatal Mistakes That Destroyed a Crypto Giant
