BitMEX Faces Class-Action Lawsuit Over Alleged Bitcoin Theft Amid Shutdown Announcement
Cryptocurrency trading exchange BitMEX announced its decision to shut down operations, effective September 23. The company cited a strategic review as the reason for ending services after 11 years of operation since co-founding in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed. However, within hours of this announcement, BitMEX was hit with a class-action lawsuit filed in the U.S. District Court for the Southern District of New York. The plaintiffs allege that the exchange engaged in Bitcoin theft and insider trading practices, including retaining customer collateral and transferring funds to an internal insurance fund. They also claim losses totaling 622.66 BTC ($40.7 million) from forced liquidations. The lawsuit seeks restitution for U.S. users who traded on BitMEX between July 23, 2018, and the present date. The plaintiffs aim to represent these individuals in seeking compensation and punitive damages.
Topics: Bitcoin theft BitMEX insider trading shutdown announcement