BitMEX Hit with $40 Million Class Action Over Alleged Bitcoin Theft Scheme

BitMEX is facing a $40 million class action lawsuit from investors accusing the platform of fraud and misappropriation of 622.66 BTC, worth around $62,630.

The plaintiffs, BKX Services and investor David Namdar, claim that BitMEX deliberately created a system to profit from client liquidations and allowed clients to use leverage up to 100x, automatically liquidating positions even when collateral was twice the losses.

The remaining funds were allegedly directed to the platform's insurance fund, generating revenue for the company. The plaintiffs also allege that BitMEX exploited its liquidation mechanism to profit at clients' expense and had access to confidential client position information during server 'freezes'.

The lawsuit was filed on the same day as BitMEX's shutdown announcement after 11 years of operation, citing a 'strategic business review'. The exchange will shut down on September 23, 2026, with users barred from opening new positions from August 26.