BitMEX Faces $40 Million Class Action Lawsuit Over Alleged Bitcoin Theft

BitMEX is facing a $40 million class action lawsuit filed by investors accusing the platform of fraud and misappropriation. The suit alleges that BitMEX deliberately created a system to profit from client liquidations, allowing its internal trading desk to access confidential user data during server freezes.

The plaintiffs claim that BitMEX allowed clients to use up to 100x leverage but then automatically liquidated positions when collateral was twice the losses. The remaining funds were allegedly directed to the platform's insurance fund, generating revenue for the company.

BitMEX has been shut down after 11 years of operation, and its closure announcement coincided with the filing of the lawsuit. If the court finds the suit valid, it could affect the exchange's shutdown process and user payouts.