BitMEX Owners Face Scrutiny Over $270 Million Insurance Fund
BitMEX's insurance fund has left customers questioning its true purpose. The $270 million reserve, which grew from customer trading losses, is set to be disbanded on September 23.
The fund held about $239 million in Bitcoin and $31 million in USDT. A significant portion of the assets came from customers who lost money through leveraged trades.
Despite some payouts to customers during loss events, many are now concerned that BitMEX's owners will keep the remaining funds for themselves. The exchange has not disclosed its plans for the insurance fund, leaving customers and traders in uncertainty.
A proposed class action lawsuit alleges that BitMEX liquidated customer positions to benefit from the growing insurance fund during times of market stress.