BitMEX is facing a proposed class action in the United States that seeks the return of more than 622 BTC ( or $40.39 million at press time) from two traders who allege the derivatives exchange designed its liquidation system to profit from forced liquidations. The lawsuit was filed on the same day BitMEX announced plans to shut down its exchange in September, although the claims stem from trading activity dating back to 2018.
BKX Services Inc. and trader David Namdar filed the complaint on Thursday in the U.S. District Court for the Southern District of New York against HDR Global Trading Limited and affiliated BitMEX entities. BKX claims it lost no less than 305.81 BTC, while Namdar alleges losses exceeding 316.85 BTC.
The plaintiffs are seeking the return of the Bitcoin they claim was wrongfully liquidated, along with compensatory and punitive damages. They also asked the court to certify a class comprising U.S. customers who traded Bitcoin perpetual swap contracts on BitMEX in transactions dating back to July 23, 2018.
Liquidation System Under Scrutiny
The plaintiffs allege that “BitMEX deliberately developed a system that profited from the liquidations,” arguing that the alleged misconduct stemmed from the design of the platform itself rather than isolated trading losses. According to the complaint, BitMEX’s internal trading desk had access to confidential customer information and continued executing trades during periods when server disruptions allegedly prevented customers from managing their own positions.
The lawsuit also references a 2020 class action filed by Brett Messieh and other traders, which raised similar allegations under the Commodity Exchange Act. Court records cited in the complaint show that case was voluntarily dismissed without prejudice on June 30, 2025, allowing similar claims to be brought in a new lawsuit. BitMEX had not publicly responded to the allegations at the time of publication.
Over the past year, exchange operators have faced steady U.S. legal pressure. A judge in the same Manhattan federal court dismissed several claims against Binance in an investor suit in March, and a consent order fined KuCoin operator Peken Global $500,000 while barring U.S. customers unless the company registers with the CFTC as a foreign board of trade.
Exchange to Shut Down
On the same day the lawsuit was filed, HDR Global Trading announced that BitMEX would cease operations after more than 11 years. The company said its board approved the decision following a review of the business and broader market conditions. BitMEX has already stopped accepting new account registrations and advised existing customers to close open positions and withdraw their funds before trading ends.
The exchange said users will no longer be able to open new positions from 4:00 a.m. UTC on Aug. 26. After that deadline, traders will only be able to reduce or close existing positions. Any positions that remain open when trading operations end on Sept. 23 will be closed automatically.
Customers who have completed identity verification but leave assets on the platform after operations cease may be charged a monthly account maintenance fee of $50 or 1% per annum of their remaining balance, whichever is greater, according to the company’s shutdown notice. BitMEX’s BMEX utility token fell sharply following the shutdown announcement, according to market data.
