BitMEX Proposed Class Action Lawsuit Alleges Collateral Theft and Insider Trading Amid Closure

BitMEX Faces Proposed Class-Action Lawsuit

BitMEX, a prominent cryptocurrency derivatives exchange, is facing a proposed class-action lawsuit alleging theft and insider trading, filed on July 23, 2026. The lawsuit was announced on the same day the exchange declared its intention to shut down operations on September 23, 2026, after 11 years in the market.

Allegations of Forced Liquidations and Collateral Withholding

The complaint was lodged in the U.S. District Court for the Southern District of New York by BKX Services and David Namdar. BKX alleges it lost at least 305.81 BTC through what it claims were unfair forced liquidations, while Namdar reports losses exceeding 316.85 BTC, totaling approximately 622.66 BTC, equivalent to around $40.7 million.

Claims Against Company and Co-Founders

The suit asserts that BitMEX and its co-founders, Arthur Hayes, Ben Delo, and Samuel Reed, implemented a system designed to retain customer collateral and subsequently transfer remaining funds to the platform’s insurance fund. The filing also contends that an internal trading desk had unauthorized access to private user information and was able to trade during server outages that restricted other users from closing their positions.

Demands of the Plaintiffs

The plaintiffs seek to represent U.S. customers who purchased BitMEX bitcoin swap products since July 23, 2018. They are demanding the return of the withheld bitcoin, as well as compensatory and punitive damages. The case requires judicial approval to proceed as a class-action lawsuit.

Recent Developments at BitMEX

BitMEX’s decision to close follows a strategic review, accompanied by significant management changes, including the departure of its CEO, chief financial officer, and head of growth last month. The company is now under the leadership of general counsel Peter Wilkinson, who has assumed the role of CEO.

As of now, CoinDesk has reached out to BitMEX and the other defendants for comments, but no response has been received.