BitMEX Sued Over Alleged Manipulation of Forced Liquidations

BitMEX is facing a class action lawsuit for allegedly manipulating its own systems to profit from forced liquidations of users.

The lawsuit, filed on the same day BitMEX announced its closure, claims that the exchange used privileged access to its servers to artificially trigger cascade liquidations and then profit through its internal liquidation engine.

BitMEX's alleged manipulation involved freezing servers during periods of peak volatility, making it difficult for traders to adjust positions or add margin, while the platform's liquidation engine continued to operate normally. This resulted in positions being forcibly closed at unfavorable prices, generating massive losses for users and gains for BitMEX.

The plaintiffs are seeking compensation for all traders harmed by these practices over a period not yet specified in the court documents. The amount claimed is 623 BTC, which represents the estimated value of damages suffered by class members.