BitMEX Sued for Alleged Unfair Liquidation Practices Worth Over 600 BTC

A proposed class action lawsuit has been filed against BitMEX, accusing the crypto derivatives exchange of unfair liquidation practices. The complaint, submitted to the US District Court for the Southern District of New York, alleges that BitMEX's internal trading desk had access to confidential customer information and continued trading during periods when regular users could not access the platform.

The plaintiffs claim they lost a combined 622.66 BTC through forced liquidations on the exchange. BKX Services Inc. allegedly lost at least 305.81 BTC, while trader David Namdar claims losses exceeding 316.85 BTC. They are asking the court to order the return of the Bitcoin they say was withheld, along with compensatory and punitive damages.

The lawsuit alleges that BitMEX's liquidation system was designed to increase revenue for the exchange instead of protecting customers. It also claims that server freezes prevented traders from closing or adjusting positions during market volatility, leaving customers unable to respond while internal operations remained active on the exchange.