BitMEX is facing a proposed class action lawsuit in the United States alleging that the cryptocurrency derivatives exchange profited from customer Bitcoin liquidations totaling 622.66 BTC.

The plaintiffs are seeking the return of Bitcoin as well as compensatory and punitive damages over what they describe as unfair liquidation practices. The lawsuit was filed on the same day BitMEX confirmed plans to permanently shut down exchange operations in September after more than 11 years in business.

Plaintiffs Allege BitMEX Retained Bitcoin From Liquidations

The proposed class action was filed in the U.S. District Court for the Southern District of New York by BKX Services Inc. and trader David Namdar. The plaintiffs allege that BitMEX engineered customer liquidations in a way that allowed the exchange to retain Bitcoin that should have been returned to traders after leveraged positions were closed.

Together, BKX Services and Namdar claim they lost 622.66 BTC through forced liquidations on the platform. According to the complaint, BKX Services lost at least 305.81 BTC, while Namdar alleges losses of more than 316.85 BTC.

The complaint says BitMEX permitted customers to trade with leverage of up to 100 times their collateral. However, the plaintiffs allege the platform liquidated positions before the available collateral had been fully exhausted, leaving surplus Bitcoin that was not returned to customers.

Instead, the lawsuit claims that remaining Bitcoin was moved into BitMEX’s insurance fund, enabling the exchange to benefit financially from the forced liquidations. In cryptocurrency derivatives markets, insurance funds are commonly used to cover losses when highly leveraged positions cannot be closed without leaving a deficit, making the handling of liquidation proceeds a central issue in disputes over exchange practices.

The plaintiffs also allege that BitMEX operated an internal trading desk with access to non-public customer information. According to the complaint, that desk continued trading during server outages that prevented ordinary users from managing or closing their positions.

The proposed class action seeks to represent U.S. customers who traded Bitcoin perpetual swap products from July 23, 2018. Perpetual swaps are derivatives contracts that allow traders to take leveraged exposure to an asset without a fixed expiry date, and BitMEX was one of the early venues associated with popularizing Bitcoin perpetual swap trading.

BitMEX has rejected the allegations. The company said it has successfully defended similar claims in the past, described the lawsuit as an opportunistic claim without merit, and said it intends to defend itself vigorously.

Case Filed as BitMEX Prepares to Close Exchange

The lawsuit comes as BitMEX prepares to wind down exchange operations after more than 11 years. Owner HDR Global Trading announced the closure following a strategic review of its business and the broader digital asset industry.

Exchange services are scheduled to end on September 23. New account registrations have already been halted. Beginning August 26, users will only be able to reduce existing positions as the exchange progressively closes remaining trades.

Any positions still open at the final deadline will be liquidated automatically under BitMEX’s existing procedures. Customers will continue to have account access for withdrawals and transaction records after trading ends.

The complaint also cites a similar class action filed in 2020 under the Commodity Exchange Act. That case was dismissed without prejudice in June 2025, which allows similar claims to be filed again.

BitMEX has previously faced regulatory scrutiny in the United States. In 2020, U.S. authorities charged the exchange’s founders with failing to implement adequate anti-money laundering controls. BitMEX later pleaded guilty to those charges and subsequently introduced several management changes.

Earlier this month, BitMEX appointed Peter Wilkinson as chief executive as part of a broader leadership restructuring. Reports also indicated that the company had explored a possible sale before announcing its planned shutdown.

The shutdown announcement was followed by a sharp decline in BitMEX’s BMEX utility token, which lost roughly 90% of its value after the news became public.