As BitMEX prepares to shut down after more than a decade in the crypto industry, the exchange is once again facing accusations that have followed it for years—this time through a proposed class action seeking the return of hundreds of Bitcoin allegedly lost to unfair liquidations.
The lawsuit, filed in a New York federal court by BKX Services Inc. and David Namdar, claims the crypto derivatives platform exploited its own liquidation system to generate profits from customer losses. Together, the two plaintiffs allege they lost more than 622 BTC, arguing that their positions were unfairly liquidated despite having sufficient collateral remaining.
Rather than simply closing overleveraged positions, BitMEX allegedly transferred excess collateral into its insurance fund instead of returning it to users. The complaint argues that this mechanism allowed the exchange to benefit financially whenever customers were liquidated.
The filing also accuses BitMEX of giving an internal trading desk advantages unavailable to ordinary traders. According to the plaintiffs, employees had access to confidential customer information and could continue trading during periods when platform outages allegedly prevented users from managing their own positions.
The lawsuit seeks to represent US customers who traded Bitcoin perpetual swap products since July 2018, requesting the return of allegedly withheld Bitcoin in addition to compensatory and punitive damages.
The timing is particularly significant. The legal action arrived on the same day BitMEX confirmed it would permanently end operations after conducting a strategic review. The exchange plans to stop accepting new trading positions on Aug. 26 before shutting down completely on Sept. 23, bringing one of crypto’s earliest derivatives platforms to an end.
BitMEX has dismissed the allegations, calling the lawsuit another attempt to pursue claims that have repeatedly failed in the past. A company spokesperson said the exchange has successfully defended itself against similar accusations over the years and intends to challenge the latest complaint in court.
The new case also echoes an earlier class action filed in 2020, which raised comparable allegations regarding BitMEX’s liquidation practices. Although that lawsuit was voluntarily dismissed without prejudice in June 2025, the latest filing suggests former customers are continuing efforts to hold the exchange accountable.
The lawsuit adds another layer of uncertainty to BitMEX’s final weeks in operation. Following the shutdown announcement, the exchange’s BMEX utility token plunged roughly 90%, underscoring fading confidence as one of the crypto industry’s oldest derivatives exchanges prepares to exit the market while still defending itself against unresolved legal challenges.
