Exchange Ranking
Top Exchanges
24h Volume Ranking
Popularity Ranking
Exchange BTC Balance
Proof of Reserves
Decentralized Exchanges
Funding Rate
Funding Heatmap
Liquidation Data
Max Pain
Long/Short Ratio
Whale L/S Ratio
Binance/Okex/Huobi L/S
Bitfinex Margin L/S
ETF Tracker
Solana ETF
XRP ETF
Hong Kong ETF
Bitcoin Treasuries
Crypto Reversal
Ethereum Reserves
HyperLiquid Wallet Analysis
Hyperliquid Whale Watch
Large Transactions
On-chain Movement
Bitcoin ROI
Stablecoin Market Cap
Options Analysis
News
Articles
Economic Calendar
Features
Wallet
Contract Calculator
Security
Collections
Watchlist
Following
BTC BitMEX faces a class action lawsuit alleging clearing system embezzled customer accounts Bitcoin
Cryptocurrency exchange BitMEX is facing a proposed class action lawsuit alleging its clearing system illegally withheld 622.66 bitcoins from customer accounts. BKX Services Inc. and trader David Namdar have filed a lawsuit in the Federal District Court for the Southern District of New York. The lawsuit was filed on the same day BitMEX confirmed that its trading platform would be closed in September. The plaintiff demanded the recovery of the bitcoin in dispute, financial compensation and punitive damages.
The plaintiff challenges the BitMEX clearing system
BKX Services and Namdar claim that they lost a total of 622.66 bitcoins in forced liquidations involving Bitcoin perpetual contracts. BKX claimed a loss of at least 305.81 bitcoins, while Namdar said more than 316.85 bitcoins were taken from his account. The lawsuit seeks to represent eligible U.S. customers who traded the product since July 23, 2018.
According to the complaint, BitMEX allows customers to trade with leverage up to 100 times the deposit collateral. The plaintiff alleged that the exchange closed some positions before traders exhausted all available collateral. They claimed that the value of the remaining bitcoins exceeded the amount of losses recorded when the position was liquidated.
The lawsuit alleges that excess collateral was transferred to the exchange's insurance funds rather than returned to customers. It also accused BitMEX of deriving revenue from the liquidation process. As of the time mentioned in the complaint, BitMEX has not provided a detailed public response to the specific allegations therein.
Internal trading operations face review
The plaintiff also alleged that a trading desk within BitMEX had access to non-public customer information. According to the complaint, the trading desk was able to monitor positions and continue trading during periods when ordinary customers were unable to access the platform. The allegations focus on server outages that allegedly prevented some users from reducing or closing positions.
The complaint argued that these conditions gave insider trading operations an advantage during periods of sharp market volatility. Customers are said to still face liquidation risks even when they are unable to manage their own transactions. The plaintiffs claimed that when these positions were closed and the remaining collateral went into insurance funds, the exchange made a profit.
Similar allegations also appeared in a class action lawsuit filed in 2020 by trader Brett Messieh and other claimants. That case invoked alleged violations of the Commodity Exchange Law. Court records cited in the new complaint show that the previous lawsuit was voluntarily withdrawn on June 30, 2025 and does not affect future reprosecutions.
BitMEX confirms it will close its exchange in September
HDR Global Trading, which owns and operates BitMEX, announced that exchange services will end at 4:00 UTC on September 23. The operator said the decision was made after a strategic review of its business and the broader digital asset market. New account registration has stopped.
Starting from August 26, existing customers will no longer be able to open new positions. As exchanges gradually close open interest, traders are only allowed to reduce existing exposure. Any positions that remain unclosed before the final deadline will be automatically cleared in accordance with the platform closure process.
BitMEX said contracts with limited liquidity may be settled before the closure date. Customers will receive advance notice of the need for early settlement. After the transaction stops, account access will remain available so that users can withdraw funds, view balances and transaction records.
Reorganization precedes BitMEX shutdown
Prior to this shutdown, BitMEX experienced a number of management changes. Stephan Lutz was replaced as CEO, and Chief Financial Officer Ina Steiner and Chief Growth Officer Raphael Polansky also left the company. Peter Wilkinson, former chief operating officer and global general counsel, subsequently became CEO.
There have been previous reports that BitMEX considered the possibility of a sale, but no deal has been announced. The exchange has faced regulatory and leadership changes since 2020, when founders Arthur Hayes, Ben Delo and Samuel Reed resigned amid U.S. anti-money laundering allegations.
BitMEX said its reserves are still above customers 'liabilities, citing its reserve certificates and liability records as a reference. The exchange also warned customers about phishing attempts related to the closure and said it did not offer priority withdrawal services. Funds left on the platform after the closure will face a fee of $50 per month or 1% per year, whichever is higher.
