Crypto derivatives exchange BitMEX is the target of a proposed class action alleging it retained 622.66 BTC drawn from customers' forced liquidations, according to a complaint filed in the U.S. District Court for the Southern District of New York. The case centers on how the platform handled proceeds when leveraged positions were automatically closed out.

The litigation, captioned BKX Services Inc. et al. v. HDR Global Trading Limited et al., appears on the federal court record under docket number nysdce-26-06259, per the CourtListener docket. HDR Global Trading Limited is the entity that operates the BitMEX exchange. The filed complaint is also accessible via PacerMonitor, and additional reporting on the filing is available through OffshoreAlert.

Nature of the Allegations

A proposed class action is a lawsuit brought by one or more named plaintiffs seeking court permission to represent a larger group of similarly affected individuals. No class has been formally approved at this stage; the class remains "proposed" until a judge certifies it.

The named plaintiff, BKX Services Inc., filed the complaint against HDR Global Trading Limited and related BitMEX entities. The dispute is framed as a legal challenge to the exchange's liquidation practices rather than a conventional claim over trading losses. The core accusation is that value belonging to traders was retained by the platform after their positions were force-closed. That distinction — retained proceeds versus routine market loss — is what elevates the matter into litigation.

The 622.66 BTC Figure

The complaint's headline number is 622.66 BTC, described as the bitcoin allegedly retained by the exchange through forced liquidations. The figure is presented as an aggregate alleged retention tied to the liquidation activity at issue, not as a single trader's loss. Precise figures matter in class action coverage because they frame the potential scale of recovery and help define the size of the affected group.

How Forced Liquidations Become a Legal Dispute

A forced liquidation occurs when a leveraged position falls below its maintenance margin and the platform automatically closes it to cover borrowed funds. This is a standard mechanic on derivatives venues and, by itself, constitutes an ordinary trading risk rather than a legal wrong.

Disputes typically emerge over what happens to the value remaining after a position is closed — including surplus margins, fees, and how liquidation proceeds are handled. Like many crypto derivatives exchanges, BitMEX operates an insurance fund designed to cover counterparty losses when liquidated positions cannot be closed at their bankruptcy price. Allegations of the type raised in this complaint center on whether surplus proceeds from liquidations should be returned to traders or can be retained by the platform. The allegation in this case differs from normal trading risk because it targets retained proceeds: the funds the plaintiffs say were kept rather than returned to traders.

Broader Context for BitMEX

Litigation over liquidation handling adds to existing legal scrutiny of BitMEX, which was previously fined $100 million for violating the Bank Secrecy Act in a separate federal matter pursued by the U.S. Attorney's Office for the Southern District of New York. The violations stemmed from failures to implement adequate anti-money laundering and customer verification programs, and the case also included individual charges against co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed, each of whom received sentences of probation.

The case is also being reported alongside news that BitMEX is set to shut down on September 23, 2026. Cointelegraph's reporting linked the litigation to the platform's wind-down, noting that the lawsuit surfaced as the exchange prepares to cease operations. A scheduled wind-down typically gives customers a defined period to withdraw remaining assets, and litigation filed during that window raises questions about whether claims can be resolved before the platform stops operating entirely.

Liquidation transparency remains a recurring concern for leveraged traders across crypto derivatives venues. If a court certifies the class, traders whose positions were force-liquidated on BitMEX under the conduct described in the complaint could fall within the proposed group. Until certification, the claims remain allegations that have not been adjudicated.