- BitMEX faces claims it profited from customer liquidations totaling 622.66 BTC.
- Plaintiffs seek Bitcoin recovery and damages over alleged unfair liquidation practices.
- Lawsuit coincides with BitMEX’s planned September shutdown after 11 years.
BitMEX is facing a proposed class action lawsuit in the United States over allegations that it profited from customer Bitcoin liquidations. The case was filed on the same day the cryptocurrency derivatives exchange confirmed it will permanently shut down operations in September, bringing renewed attention to its liquidation practices and past regulatory challenges.
Plaintiffs Claim BitMEX Profited From Customer Liquidations
BitMEX has been accused of engineering customer liquidations to retain Bitcoin that should have been returned to traders after leveraged positions closed.
The proposed class action was filed in the U.S. District Court for the Southern District of New York by BKX Services Inc. and trader David Namdar. Together, they claim losses totaling 622.66 BTC through forced liquidations on the exchange.
According to the complaint, BKX Services lost at least 305.81 BTC, while Namdar alleges losses exceeding 316.85 BTC. The plaintiffs seek the return of the Bitcoin alongside compensatory and punitive damages.
The lawsuit claims BitMEX allowed customers to trade with leverage of up to 100 times their collateral. However, it alleges the platform liquidated positions before exhausting available collateral, leaving excess Bitcoin unreturned.
Instead, the complaint argues the remaining Bitcoin was transferred into BitMEX’s insurance fund, allowing the exchange to benefit financially from forced liquidations.
Additionally, the plaintiffs allege BitMEX operated an internal trading desk with access to non-public customer information. They also claim the desk continued trading during server outages that prevented regular users from managing or closing positions.
The proposed class action seeks to represent U.S. customers who traded Bitcoin perpetual swap products from July 23, 2018.
BitMEX rejected the allegations, stating it has successfully defended similar claims previously. The company described the lawsuit as an opportunistic claim without merit and said it intends to defend itself vigorously.
Lawsuit Arrives As BitMEX Winds Down Operations
The legal action comes as BitMEX prepares to end exchange operations after more than 11 years in business.
Owner HDR Global Trading announced the shutdown following a strategic review of its business and the broader digital asset industry. Exchange services will officially end on September 23.
New account registrations have already stopped. Beginning August 26, users will only be allowed to reduce existing positions before the exchange gradually closes remaining trades.
Any positions left open at the final deadline will be liquidated automatically under BitMEX’s existing procedures. Meanwhile, customers will retain account access for withdrawals and transaction records after trading ends.
The complaint also references a similar class action filed in 2020 under the Commodity Exchange Act. That case was dismissed without prejudice in June 2025, allowing similar claims to be filed again.
BitMEX has faced regulatory scrutiny before. In 2020, U.S. authorities charged its founders with failing to implement adequate anti-money laundering controls. The exchange later pleaded guilty to those charges and introduced several management changes.
Earlier this month, BitMEX appointed Peter Wilkinson as chief executive following a broader leadership restructuring. Reports also suggested the company had explored a potential sale before announcing its closure.
The shutdown announcement triggered a sharp decline in the exchange’s BMEX utility token, which lost roughly 90% of its value after the news became public.
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