BitMEX Hit With 623 BTC Lawsuit Just As It Announces Shutdown

Crypto exchange BitMEX is facing a new class action lawsuit from BKX Services and investor David Namdar. The plaintiffs claim the platform engaged in market manipulation and misappropriated nearly 623 Bitcoin through unfair forced liquidations. This legal action arrives right on the heels of the exchange announcing its complete shutdown plans.

According to the court filing, BitMEX allowed trading with high leverage but liquidated user positions prematurely before all collateral was exhausted. The plaintiffs allege the platform kept the remaining Bitcoin instead of returning it to users, routing the funds into an insurance pool. The lawsuit also claims that internal trading teams accessed private user data while platform servers were down.

This legal trouble comes as BitMEX owner HDR Global Trading prepares to close the exchange following a strategic review. The shutdown is scheduled for September 23, and new account registrations are already blocked. Co founder Arthur Hayes thanked users and supporters, stating the exchange is closing responsibly on its own terms.

Traders should watch how this class action plays out as the platform winds down its operations. While BitMEX handles the final steps of its closure, affected users are seeking full recovery of their seized crypto assets and financial damages.