BitMEX Sued for Alleged Theft and Insider Trading as Exchange Prepares for Shutdown

BitMEX, a leading cryptocurrency derivatives exchange, is facing a proposed class-action lawsuit alleging theft and insider trading. The suit was filed on July 23, the same day BitMEX announced it would shut down in three months. The plaintiffs claim they lost over $40 million worth of Bitcoin due to forced liquidations.

The complaint alleges that BitMEX and its co-founders designed a system to retain customers' collateral and transfer the remaining Bitcoin to the platform's insurance fund. It also claims that an internal trading desk had access to private customer information and could continue trading during server freezes, preventing other users from closing their positions.

The plaintiffs are seeking the return of the stolen Bitcoin, compensatory damages, and punitive damages. The court must approve the class-action suit for it to proceed.