BitMEX Hit with Lawsuit as It Prepares to Shut Down Amid Allegations of Theft and Insider Trading

BitMEX, a prominent crypto derivatives exchange, is facing a proposed class-action lawsuit alleging theft of Bitcoin and insider trading. The lawsuit was filed on July 23 by BKX Services and David Namdar in the U.S. District Court for the Southern District of New York.

The plaintiffs claim to have lost at least 622.66 BTC ($40.7 million) through forced liquidations and allege that BitMEX designed a system to retain customers' collateral, transferring remaining Bitcoin to its insurance fund.

BitMEX's parent company, HDR Global Trading, and co-founders Arthur Hayes, Ben Delo, and Samuel Reed are named as defendants. The plaintiffs seek the return of the Bitcoin, compensatory damages, and punitive damages.