BitMEX hit with 623 BTC lawsuit on day it announces shutdown
BKX Services Inc. and David Namdar filed a class action in federal court in New York accusing BitMEX of fraudulently causing customer liquidations to seize Bitcoin collateral. They claim combined losses of 622.66 BTC from forced liquidations and allege BitMEX’s liquidation engine and internal trading desk were designed to profit from customer losses, including by using private user information and trading during server freezes that blocked customers from managing positions. The plaintiffs seek return of the allegedly withheld BTC plus compensatory and punitive damages for US customers in BTC swap trades dating back to July 23, 2018. The suit echoes earlier allegations and follows a prior related case that was dismissed without prejudice. The filing came the same day BitMEX announced it will shut down operations on Sept. 23 after 11 years.
