BitMEX faces proposed class-action suit for theft, insider trading as crypto exchange shuts down
BitMEX is facing a class-action lawsuit alleging theft and insider trading as the cryptocurrency exchange prepares to shut down after 11 years. Plaintiffs claim the platform manipulated liquidations to retain customer funds for its insurance pool.
Why it matters
This lawsuit highlights ongoing regulatory and legal challenges within the cryptocurrency exchange sector regarding transparency and user protection.
The lawsuit , filed by former tokenization project BKX Services and David Namdar in the U.S. District Court for the Southern District of New York, sees BKX claim it lost at least 305.81 BTC through forced liquidations, while Namdar alleges losses of more than 316.85 BTC — a total of 622.66 BTC ($40.7 million).
The July 23 filing came as BitMEX said it would close on Sept. 23 , ending an 11-year run. Similar claims were made in a 2020 class-action case, which was closed in June 2025 without a ruling on the liquidation allegations.
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