BitMEX was hit with a lawsuit involving 623 Bitcoin (BTC) on the same day it announced its shutdown, and is accused of manipulating liquidations for profit.

Crypto derivatives trading platform BitMEX faced a class-action lawsuit on the same day it announced it would cease operations in September, accused of manipulating users’ forced liquidations and profiting via internal trading privileges and system mechanisms. BKX Services Inc. and David Namdar filed the suit Thursday with the U.S. District Court for the Southern District of New York, alleging BitMEX fraudulently designed its liquidation mechanism, resulting in total user losses of 622.66 BTC. BKX claims losses of at least 305.81 BTC, while Namdar says his losses exceed 316.85 BTC. The plaintiffs allege BitMEX’s internal trading team accessed users’ private transaction data and continued trading while regular users were unable to close positions due to server freezes, profiting from forced liquidations. Court documents state BitMEX allowed users up to 100x leverage; when a user’s position triggered liquidation, the platform executed automatic liquidation even if collateral value remained higher than actual losses, transferring the remaining BTC to its insurance fund. The plaintiffs are seeking return of the withheld BTC, compensatory and punitive damages, and aim to represent U.S. users who traded BitMEX’s BTC swap products since July 23, 2018. The lawsuit has reignited longstanding external controversy over BitMEX’s liquidation mechanism. Previously, a class-action lawsuit over similar allegations was filed by users in 2020; that case was voluntarily dismissed on June 30, 2025, and does not preclude future filings.