BitMEX Hit with $40m Lawsuit on Day of Closure

BitMEX, a pioneering cryptocurrency derivatives trading platform, has been hit with a class action lawsuit on the day it announced its closure. The plaintiffs accuse BitMEX of manipulating forced liquidations to profit from its users.

The lawsuit alleges that BitMEX used privileged access to its servers to artificially trigger cascade liquidations and then profited from them through its internal liquidation engine. This meant that traders were unable to adjust their positions or add margin during periods of peak volatility, resulting in massive losses for users and gains for the platform.

The amount claimed, 623 BTC, represents the estimated value of damages suffered by class members, equating to tens of millions of dollars at current prices. The lawsuit seeks compensation for all traders harmed by these practices over an unspecified period.

BitMEX's closure comes as no surprise, given its decline in market share and regulatory troubles. However, the timing raises questions about the platform's intentions, with some speculating that it may be attempting to escape mounting legal liabilities.