BitMEX is facing a proposed class-action complaint alleging manipulated liquidations and withheld Bitcoin collateral. BKX Services Inc. and David Namdar filed the case against exchange operator HDR Global Trading and related defendants in the U.S. District Court for the Southern District of New York on July 23, 2026.
The plaintiffs claim combined losses of at least 622.66 BTC, with BKX alleging 305.81 BTC in losses and Namdar claiming more than 316.85 BTC. The accusations remain unproven, and the court has not certified the proposed class or ruled on the merits.
Complaint Targets Liquidation and Insurance-Fund Mechanics
The complaint alleges BitMEX liquidated leveraged positions before customers’ collateral was fully exhausted. It claims remaining Bitcoin was transferred into the exchange’s insurance fund rather than returned to affected traders, allowing the platform to benefit from the liquidation process.
The plaintiffs also accuse BitMEX of operating an internal trading desk with access to confidential customer information. That desk allegedly remained able to trade during server freezes that prevented ordinary users from managing or closing their positions.
The lawsuit seeks the return of the disputed Bitcoin, compensatory damages and punitive damages. It aims to represent U.S. customers who purchased BitMEX Bitcoin swap products in transactions dating from July 23, 2018.
BitMEX has rejected the allegations as an opportunistic and baseless claim, stating that it intends to defend itself. That response does not resolve the factual dispute, which will depend on evidence, motion practice and any eventual court findings.
Exchange Closure Creates a Time-Sensitive Backdrop
The complaint was filed as BitMEX announced the closure of its exchange on September 23, 2026, at 04:00 UTC. The platform has stopped accepting new registrations and will prevent users from opening new positions from August 26 as it begins an orderly wind-down.
BitMEX has urged customers to close positions and withdraw assets before the shutdown deadline. Any remaining open contracts may be forcibly closed, while balances left after closure will be subject to account-maintenance fees.
The shutdown does not establish that BitMEX lacks assets to meet ordinary customer liabilities. The exchange states that its assets exceed liabilities, but the lawsuit introduces a separate dispute over whether specific Bitcoin collateral was improperly retained during historical liquidation events.
The case places BitMEX’s liquidation engine, insurance fund and internal information controls under renewed legal scrutiny. The next important developments will be the defendants’ formal response, class-certification proceedings and whether the plaintiffs can substantiate their claims concerning the disputed 622.66 BTC.