A proposed class action lawsuit has been filed against BitMEX in the U.S., accusing the crypto derivatives exchange of manipulating customer liquidations to keep hundreds of Bitcoins ahead of its September shutdown.
According to court documents from the U.S. District Court for the Southern District of New York, BKX Services Inc. and trader David Namdar filed the complaint on Thursday. They claim to have lost a combined 622.66 BTC through forced liquidations on BitMEX. BKX alleges losses of at least 305.81 BTC, while Namdar's losses exceed 316.85 BTC.
The legal action coincides with BitMEX’s announcement that it will wind down its exchange operations in September. The plaintiffs argue the exchange’s internal trading mechanics gave it an unfair edge during volatile market periods, enabling BitMEX to profit from liquidations at the expense of users.
Claims of Unfair Liquidation Practices
The complaint states that BitMEX allowed leveraged trading up to 100 times the user's collateral but reportedly liquidated positions prematurely, even when the collateral still held more value than the losses. The excess Bitcoin allegedly did not return to customers but was instead funneled into BitMEX’s insurance fund.
Further allegations include the existence of an internal trading desk with access to confidential customer data, which supposedly continued trading during server outages when regular traders were locked out and unable to manage their positions. "BitMEX deliberately developed a system that profited from the liquidations," the plaintiffs claim.
In addition to seeking the return of the withheld 622.66 BTC, BKX and Namdar are requesting compensatory and punitive damages. Their class action aims to represent U.S. traders involved in Bitcoin perpetual swap products since July 23, 2018.
The filing references a previous class action brought in 2020 by Brett Messieh and others with similar allegations under the Commodity Exchange Act. That case was dismissed without prejudice on June 30, 2025, allowing this new lawsuit to proceed.
Earlier coverage of class action suits against BitMEX highlights ongoing concerns over the exchange's liquidation practices. The timing of this lawsuit right before BitMEX’s scheduled closure adds another layer of scrutiny to the company’s final months of operation.
