BitMEX Co-Founders Accused of Running Secretive Insider Trading Desk
BitMEX and its co-founders are facing a new proposed class action alleging the crypto exchange secretly traded against customers and forced liquidations during volatile market periods.
The lawsuit, filed by two former BitMEX customers in the U.S. District Court for the Southern District of New York, names HDR Global Trading Limited, affiliated entities, and BitMEX co-founders Arthur Hayes, Samuel Reed, and Benjamin Delo as defendants.
The plaintiffs allege that BitMEX operated an undisclosed 'Insider Trading Desk' that used private customer account data to trade against users while presenting itself as a neutral marketplace.
The complaint claims the desk traded against users during volatile market periods, identifying price moves that would liquidate the largest number of customers.