BitMEX Hit with New Class Action Lawsuit Alleging Insider Trading

A new class action lawsuit has been filed against BitMEX and its founders, Arthur Hayes, Samuel Reed, and Ben Delo. The complaint alleges that the exchange secretly operated an internal trading desk, also known as an 'Insider Trading Desk,' which traded directly against customers.

The plaintiffs claim that this desk had privileged access to customer orders, including hidden orders, giving insiders an unfair trading advantage. They further allege that BitMEX used this information to profit from customer liquidations while generating more trading fees.

The lawsuit claims that the exchange earned over $1 billion in transaction fees between November 2014 and October 2024, with its flagship XBTUSD perpetual contract processing over $2 trillion in trading volume during that period. The plaintiffs are seeking damages, including compensatory and punitive damages, as well as the return of customers' Bitcoin.