BitMEX Hit with $1.2 Million Lawsuit Over Alleged Market Manipulation
A class-action lawsuit has been filed against BitMEX, alleging that the exchange engaged in market manipulation and misappropriated nearly 623 BTC from users.
The plaintiffs, BKX Services Inc. and David Namdar, claim that BitMEX's internal trading team accessed customers' private information while servers were down and users were locked out of their accounts.
The lawsuit accuses the exchange of forcing liquidations on users when they had not yet reached the required level of losses to trigger a sell order. This resulted in users losing their positions, while the remaining BTC collateral was worth more than the losses incurred.
Instead of refunding the excess BTC to traders, BitMEX allegedly redirected the funds to its insurance pool, allowing the platform to financially benefit from forced liquidations.