On Thursday, July 23, 2026, BKX Services Inc. and David Namdar filed a class action complaint in the United States District Court for the Southern District of New York against HDR Global Trading Limited, ABS Global Trading Limited, 100X Holdings Limited, Shine Effort Inc Limited, HDR Global Services (Bermuda) Limited, Arthur Hayes, Samuel Reed, Benjamin Delo, and Gregory Dwyer, collectively referred to as “BitMEX.”
The lawsuit alleges that BitMEX engaged in a fraudulent scheme to steal bitcoin from its customers through market manipulation and an insider trading operation.
The complaint, which seeks specific recovery of bitcoin, outlines a pattern of alleged misconduct dating back to at least 2018. Plaintiffs BKX Services Inc. and David Namdar claim that BitMEX, one of the world’s largest crypto-asset exchanges, lured customers with promises of high leverage and capped losses, while secretly operating an “Insider Trading Desk.” This desk, allegedly managed by BitMEX employees, had access to private customer information and used it to trade against clients, profiting from forced liquidations.
According to the filing, BitMEX’s system of automatic liquidation, designed to close positions with unrealized losses equal to half of the posted collateral, was set at a point higher than necessary. This practice, the plaintiffs allege, allowed BitMEX to seize remaining customer collateral and add it to an “Insurance Fund,” which grew substantially due to these liquidations.
The complaint details numerous instances where BKX Services and David Namdar were allegedly liquidated on the BitMEX platform, resulting in the loss of significant amounts of bitcoin. For example, BKX Services reported losses of over 305 BTC due to multiple liquidations between July 2018 and August 2018. David Namdar also reported substantial losses, including over 316 BTC from liquidations between August 2019 and May 2020.
The lawsuit further alleges that BitMEX manipulated the market by freezing its servers during periods of high volatility, preventing ordinary customers from accessing their accounts and protecting their positions, while its Insider Trading Desk continued to trade freely. This alleged manipulation, combined with deceptive practices, is said to have defrauded customers and enabled BitMEX to seize their bitcoin.
The complaint asserts claims for replevin and fraud, seeking the return of bitcoin converted by BitMEX and holding the defendants accountable for their alleged fraudulent conduct. Plaintiffs also demand exemplary damages, alleging that BitMEX acted with malice and in reckless disregard of their rights.
The case has been filed as a class action, representing all persons who purchased bitcoin swap products on BitMEX in domestic U.S. transactions between July 23, 2018, and a date to be determined by the court.
Please contact BlockTribune for access to a copy of this filing.
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