BitMEX hit with 623 BTC fraud lawsuit on shutdown day
Crypto exchange accused of unlawfully seizing users' assets through liquidation engine.
1Serious allegations against BitMEX
Crypto derivatives platform BitMEX faces fraud accusations for allegedly seizing users' Bitcoin collateral through manipulated liquidations. A class action filed in New York Southern District Court claims the platform deliberately engineered its liquidation engine. Plaintiffs BKX Services and David Namdar allege combined losses of 622.66 BTC.
2Lack of transparency in internal operations
Court documents suggest BitMEX's internal trading desk had access to private customer data and continued trading during server freezes when regular users couldn't act. This allegedly allowed the platform to profit from forced liquidations. A BitMEX spokesperson dismissed the claims as 'opportunistic' without merit.
3High leverage risks exposed
The lawsuit claims BitMEX offered up to 100x leverage but automatically liquidated positions when collateral was still worth double the losses. Remaining BTC allegedly went to the platform's insurance fund, supporting claims that BitMEX profited from forced liquidations. This practice is now under legal scrutiny.
4History of similar cases
The complaint references a 2020 class action by Brett Messieh and other traders making similar claims under the Commodity Exchange Act, which was voluntarily dismissed in 2025. The new lawsuit coincidentally emerged on the same day BitMEX announced its September shutdown after 11 years of operation.
5Platform's wind-down process
Following a strategic review by owner HDR Global Trading, BitMEX will cease operations on September 23. The platform has stopped new registrations and will prevent new position openings from August 26. This announcement triggered a roughly 90% plunge in BitMEX's BMEX utility token value.
6Accountability in crypto sector
This case reignites debates about operational transparency and user asset protection in decentralized finance. The BitMEX example may spark industry-wide discussions about high-leverage product risks and exchange oversight mechanisms. The lawsuit's outcome could set precedents for similar platforms in the crypto derivatives space.
Original article: Cointelegraph.com News — BitMEX'e 623 BTC'lik dolandırıcılık davası açıldı