BitMEX faces 623 BTC lawsuit as shutdown announced

A proposed class action lawsuit was filed on July 23, 2026, against the cryptocurrency derivatives exchange BitMEX, alleging it fraudulently designed its liquidation system to seize customer funds. The complaint, filed in the U.S. District Court for the Southern District of New York, coincides with the exchange's announcement that it will cease operations in September after an 11-year run.

The plaintiffs, BKX Services Inc. and trader David Namdar, allege they collectively lost 622.66 Bitcoin, valued at approximately $40.7 million, through forced liquidations on the platform. BKX claims losses of at least 305.81 BTC, while Namdar alleges losses exceeding 316.85 BTC. The lawsuit names BitMEX operator HDR Global Trading Limited, several related companies, co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed, and former executive Gregory Dwyer as defendants.

Central to the complaint are allegations about BitMEX's liquidation mechanics. The exchange was known for offering leverage of up to 100 times a trader's collateral. The plaintiffs do not dispute an exchange's right to liquidate undercollateralized positions but claim BitMEX closed trades while the remaining collateral was...