Jul 24, 2026, 9:54 a.m.
2 min read
Summary
- BitMEX is facing a proposed class-action lawsuit from BKX Services and David Namdar, who allege unfair liquidations and the withholding of collateral.
- The complaint, which cites 622.66 BTC ($40.7 million) allegedly owed to the plaintiffs, says BitMEX designed a system to retain customer collateral and says an internal desk accessed private user data during server freezes.
- The lawsuit coincides with BitMEX announcing it will cease operations on Sept. 23, ending its 11-year run as a crypto derivatives exchange.
BitMEX, the crypto derivatives exchange that invented the perpetual swap, faces a proposed class action suit alleging theft of bitcoin BTC$65,072.44 and insider trading filed the same day it said it would shut down in three months.
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.
The new complaint alleges BitMEX and co-founders Arthur Hayes, Ben Delo and Samuel Reed designed a system to retain customers’ collateral and transfer the remaining bitcoin to the platform’s insurance fund. It also says an internal trading desk had access to private customer information and could continue trading during server freezes that prevented other users from closing their positions.
BitMEX allowed traders to borrow up to 100 times their collateral to leverage their positions. The plaintiffs allege the platform liquidated their positions while the collateral was still worth roughly twice the losses and withheld the balance.
It names parent company HDR Global Trading, several affiliates and the co-founders as respondents.
The plaintiffs want to represent U.S. customers who bought BitMEX bitcoin swap products from July 23, 2018. They are seeking the return of the bitcoin, compensatory damages and punitive damages. It requires a judge to rule that it can proceed as a class-action suit.
The exchange’s closure followed a strategic review by HDR and a wider management shake-up. BitMEX lost its CEO, chief financial officer and head of growth last month, with general counsel Peter Wilkinson taking over as CEO.
CoinDesk reached out to BitMEX and other defendants for comment, but had not heard back by publication time.
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Crypto Flows, Share and the Selective Rotation
Crypto Flows, Share and the Selective Rotation
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Jul 22, 2026
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.