CoinDesk
BitMEX, the crypto derivatives exchange that invented the perpetual swap, is facing a proposed class-action lawsuit in the U.S. District Court for the Southern District of New York alleging theft of customer bitcoin, insider trading via an internal desk, and a system designed to siphon collateral into the platform's insurance fund. Filed July 23 by BKX Services and David Namdar, the complaint claims losses of 622.66 BTC (roughly $40.7 million), split between 305.81 BTC from BKX and more than 316.85 BTC from Namdar, both forced through liquidations plaintiffs say occurred while collateral still covered roughly twice the losses.
The complaint names parent company HDR Global Trading, several affiliates, and co-founders Arthur Hayes, Ben Delo and Samuel Reed as respondents. It alleges an internal trading desk retained access to private customer information and could continue trading during server freezes that locked out other users, a window the plaintiffs argue was used to trade against frozen positions. The proposed class would cover U.S. customers who bought BitMEX bitcoin swap products from July 23, 2018 onward, seeking return of the bitcoin plus compensatory and punitive damages.
Why it matters
The filing lands ten weeks before BitMEX shuts down for good on Sept. 23, ending an 11-year run that began when the platform invented the perpetual swap. The closure followed a strategic review by HDR and a wider management shake-up that cost BitMEX its CEO, CFO and head of growth in recent months, with general counsel Peter Wilkinson now running the venue. A similar 2020 class-action was closed in June 2025 without a ruling on the liquidation claims, so the substantive allegations have never been tested in court.
Market impact
BitMEX allowed leverage up to 100x on bitcoin positions, the deepest in the offshore derivatives space at launch. Allegations of an internal desk trading on customer data during freezes cut at the core trust assumption offshore venues rely on: that the matching engine cannot be tilted by the house. BitMEX had not responded to requests for comment by publication time.
Frequently asked questions
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What is BitMEX accused of in the proposed class-action?
BitMEX is accused of designing a system to retain customer collateral by liquidating positions while collateral still covered roughly twice the losses and routing the excess into the platform's insurance fund, and of running an internal trading desk that could access private customer data and trade during server…
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How much bitcoin are the plaintiffs claiming they lost?
BKX Services claims losses of at least 305.81 BTC and David Namdar claims more than 316.85 BTC, totaling 622.66 BTC, roughly $40.7 million at filing, through forced liquidations on BitMEX.
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Who are the defendants named in the complaint?
The complaint names parent company HDR Global Trading, several affiliates, and BitMEX co-founders Arthur Hayes, Ben Delo and Samuel Reed as respondents.
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When is BitMEX shutting down and why?
BitMEX announced it will cease operations on Sept. 23, ending an 11-year run. The closure followed a strategic review by HDR Global Trading and a management shake-up that cost BitMEX its CEO, CFO and head of growth, with general counsel Peter Wilkinson taking over as CEO.
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Has BitMEX faced a similar lawsuit before?
Yes. A similar class-action filed in 2020 made comparable liquidation allegations but was closed in June 2025 without a ruling on the substantive claims, meaning the underlying allegations have not been tested in court.
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