BitMEX Faces Lawsuit Over Alleged Theft and Insider Trading
Cryptocurrency derivatives exchange BitMEX, which is set to shut down in three months on September 23, faces a new proposed class-action lawsuit. The suit alleges theft of Bitcoin through forced liquidations and insider trading by the platform's internal operations. BKX Services claims it lost at least 305 BTC due to these practices, while David Namdar reports losses totaling $40.7 million from 622 BTC. The plaintiffs accuse BitMEX co-founders Arthur Hayes, Ben Delo, and Samuel Reed of designing a system that retained customer collateral for the platform's insurance fund. The lawsuit also claims an internal trading desk had access to private user data and could trade during server freezes when other users were unable to close positions. The case seeks class-action status involving U.S. customers who used BitMEX Bitcoin swap products since July 2018, with demands for the return of assets and compensatory and punitive damages. This is not the first legal challenge against BitMEX; a similar lawsuit from 2020 was closed in 2025 without resolution. The current case must be approved by a judge to proceed as a class action.
Topics: BitMEX crypto derivatives insider trading theft