BitMEX Sued on Shutdown Day Over Alleged Manipulation and Profiteering

A BitMEX cryptocurrency exchange has been hit with a lawsuit on the same day it announced its plans to shut down, alleging that the platform engaged in manipulative practices and made profits at the expense of its users.

The suit, filed by BKX Services and David Namdar in the US District Court for the Southern District of New York, claims that the exchange generated over $40 million in profit through a complex system of internal trades and market manipulation.

According to the lawsuit, BitMEX's proprietary trading desk, led by Gregory Dwyer, had access to sensitive user data and used this information to engage in high-frequency trading, creating an uneven playing field for users.