Crypto derivatives exchange BitMEX has been hit with a proposed class-action lawsuit in the United States, with plaintiffs alleging the platform wrongfully liquidated customer positions and retained approximately 622.66 BTC (around 623 BTC). The complaint was filed in the U.S. District Court for the Southern District of New York on July 24, 2026, the same day BitMEX announced plans to shut down its exchange operations.
BitMEX Faces 623 BTC Class-Action Lawsuit
The lawsuit was brought by BKX Services Inc. and crypto investor David Namdar against HDR Global Trading Limited and related BitMEX entities. The plaintiffs claim the exchange’s liquidation engine unfairly closed leveraged positions, causing them to lose a combined 622.66 BTC.
- BKX Services Inc.: 305.81 BTC
- David Namdar: 316.85 BTC
- Total alleged losses: 622.66 BTC (approximately 623 BTC)
The plaintiffs are seeking the return of the Bitcoin, compensatory damages, punitive damages, and certification of the lawsuit as a class action representing other affected U.S. users.
Key Allegations Against BitMEX
According to the complaint, BitMEX’s trading and liquidation systems were designed in a manner that allegedly benefited the exchange at the expense of its customers.
- Forced liquidation of leveraged positions despite customers allegedly having sufficient collateral.
- Retention of remaining Bitcoin after liquidation instead of returning excess collateral to traders.
- Use of an insurance fund that allegedly received customer assets following liquidations.
- Internal personnel allegedly having access to confidential customer trading information.
- Internal trading allegedly continued during platform outages while customers were unable to manage or close their positions.
- Operation of Bitcoin perpetual swaps offering leverage of up to 100x.
The lawsuit claims these practices resulted in significant financial losses for customers and unfairly enriched the exchange.
Class Action Seeks to Represent More Traders
The proposed class action seeks to include U.S. customers who traded Bitcoin perpetual swap contracts on BitMEX beginning on or after July 23, 2018. If certified, other traders who experienced similar liquidations may be able to participate in the case.
Links to Earlier Legal Challenges
The complaint also references a similar lawsuit filed in 2020 that challenged BitMEX’s liquidation practices and insurance fund operations. That case was voluntarily dismissed without prejudice in June 2025, allowing similar claims to be filed again.
BitMEX has also faced significant regulatory action in recent years. In 2021, the U.S. Commodity Futures Trading Commission (CFTC) ordered the exchange to pay a $100 million civil penalty over operating an unregistered derivatives platform and failing to implement adequate anti-money laundering controls. In 2025, the company pleaded guilty to violating the U.S. Bank Secrecy Act and agreed to another $100 million criminal fine.
Lawsuit Coincides With BitMEX Shutdown
The legal action comes at a critical time for BitMEX. The exchange recently announced it will permanently cease operations on September 23, 2026. The company has already stopped accepting new customer registrations and will prevent users from opening new positions after August 26, 2026, while existing customers are expected to close positions and withdraw assets before the shutdown.
As part of the wind-down process, BitMEX also announced it will delist 35 derivatives contracts on July 30, 2026, at 12:00 UTC, further reducing its trading offerings ahead of the planned closure.
Why This Case Matters
The lawsuit could become one of the most closely watched legal disputes involving crypto derivatives exchanges. If the plaintiffs succeed, the case may increase scrutiny of how exchanges operate liquidation engines, manage insurance funds, and handle customer collateral. It could also encourage additional traders with similar claims to join the proposed class action and push the industry toward greater transparency in liquidation and risk management practices.
In late June 2026, BitMEX replaced its CEO, CFO, and Chief Growth Officer in a surprise leadership shakeup, marking one of the exchange’s biggest executive restructurings in recent years. Weeks later, the company is facing a class-action lawsuit over alleged wrongful liquidations involving 623 BTC while preparing to shut down its exchange operations.
