BitMEX sued for allegedly profiting from customer Bitcoin liquidations

A proposed class‑action lawsuit in the U.S. District Court for the Southern District of New York accuses BitMEX of engineering forced liquidations that allowed the exchange to retain 622.66 BTC, with plaintiffs BKX Services Inc. and trader David Namdar seeking the return of the Bitcoin and compensatory and punitive damages. The complaint alleges that BitMEX’s internal trading desk had privileged access to non‑public customer information, enabling it to trade during server outages and to liquidate positions before customers’ collateral was exhausted, thereby transferring excess Bitcoin into the exchange’s insurance fund instead of returning it to users. The lawsuit also references a 2020 class action that was dismissed and seeks to represent U.S. customers who traded Bitcoin perpetual swap products since July 2018. The legal action coincides with BitMEX’s announced shutdown of exchange operations on September 23, following a strategic review and a series of executive changes that began in 2020. While the platform will cease trading, it will allow account access for withdrawals and will charge a fee for funds left on the platform after the shutdown. The company has highlighted that its reserves exceed customer liabilities and has urged users to remain vigilant against phishing scams related to the closure.

(Source：Crypto News)