BitMEX Sued for $40.7 Million in Damages Over Alleged Manipulation

BitMEX, one of the crypto industry's most prominent derivatives platforms, is facing a lawsuit seeking $40.7 million in damages.

The suit was filed by BKX Services and trader David Namdar in the US District Court for the Southern District of New York on Thursday, just hours after BitMEX announced its plans to shut down in September.

According to the complaint, BitMEX's liquidation system was designed to retain customer collateral and transfer remaining Bitcoin into its insurance fund. The plaintiffs allege that an internal trading desk accessed private customer information and continued operating during server outages that prevented users from managing or closing their positions.