- The lawsuit was filed the day BitMEX announced its shutdown.
- The lawsuit alleges that a large amount of Bitcoin was stored.
- Claimants claim a loss of 622.66 BTC.
BitMEX is facing a new legal challenge after a class-action lawsuit against derivative cryptocurrency exchanges for deliberately engineering customer liquidations to take the assets of traders’ Bitcoin collateral.
The case was filed the same day the company announced plans to close his activities, putting new focus on allegations about his financial and business practices.
The lawsuit, which was filed in the US District Court for the Southern District of New York, seeks to recover hundreds of bitcoins that the plaintiffs claim were wrongfully obtained through forced litigation.
The lawsuit claims that more than 622 Bitcoins were misappropriated
The case was brought by BKX Services Inc. and investor David Namdar, who says that together they lost 622.66 BTC due to the liquidation process of BitMEX.
According to the complaintBKX Services lost at least 305.81 BTC, while David Namdar claimed losses of more than 316.85 BTC.
The plaintiffs claim that these losses were not the result of general market events but stemmed from a preemptive system that allegedly operated in BitMEX’s interest.
The complaint accuses the exchange of intentionally creating a hoarding of funds that led to the retention of remaining Bitcoin customers.
It also claims that BitMEX benefited from these withdrawals instead of returning any collateral after the positions were closed.
The plaintiffs are seeking damages and other legal remedies, arguing that the exchange’s practices have caused significant economic losses in many commercial transactions.
Critics criticize BitMEX’s model of elimination
At the heart of the case is the BitMEX discount engine, which the plaintiffs say was designed to benefit the exchange rather than protect traders from heavy losses.
BitMEX became one of the largest crypto trading platforms by offering up to 100x leveraged trading, allowing traders to control positions much larger than the collateral they invested.
While leverage can increase profits, it also carries the risk of being liquidated when the market is against a position.
The complaint alleges that the merchant’s property was terminated even though the remaining lien exceeded the damages. Instead of returning the extra Bitcoin after closing the positions, the case BitMEX kept that money.
The plaintiffs also claim that server shutdowns and disruptions during periods of market volatility contributed to preventable incidents.
According to the post, this prevented some traders from monitoring or closing their positions before they were removed.
The lawsuit alleges that these practices allowed exchanges to acquire Bitcoin customers through forced payments instead of simply covering trading losses.
The legal action coincides with the announcement of the BitMEX shutdown
The timing of the case has drawn attention because it was filed on the same day BitMEX announced it would cease operations.
The company said it plans to close on September 23, 2026, following a thorough review of its business.
As part of the closing process, customers are advised to close the open space and remove their belongings before the service ends.
The law now adds further uncertainty to the final weeks of work.
While the suspension announcement focuses on the company’s decision to liquidate its business, the case raises different issues related to the management of customer funds and the withdrawal process.
The allegations in the complaint have not been proven in court, and the case represents the allegations made by the plaintiffs.
A court of law will determine whether BitMEX or its affiliates are legally responsible for the alleged damages.
The case also revives long-standing scrutiny of BitMEX’s liquidation system, which has been a controversial issue within the cryptocurrency trading community for years.
As the exchange prepares to liquidate its operations, the outcome of this case may be one of the most closely watched legal disputes in the crypto derivatives platform and its support for customer collateral.
