622 Bitcoin at Center of Last-Minute BitMEX Lawsuit

TLDR

• BitMEX faces a proposed class action lawsuit over alleged fraudulent Bitcoin liquidations.
• Plaintiffs claim they lost a combined 622.66 BTC through forced liquidations on the exchange.
• The lawsuit alleges BitMEX’s internal trading desk had access to confidential customer information.
• Traders claim server freezes prevented them from managing positions during volatile market conditions.
• The complaint alleges excess Bitcoin collateral was transferred to BitMEX’s insurance fund.

BitMEX is facing a proposed class action lawsuit in the United States just as the crypto derivatives exchange prepares to shut down after 11 years of operation. The complaint accuses the platform of using a liquidation system that unfairly benefited the exchange while causing customers to lose their Bitcoin collateral. The legal filing was submitted to the US District Court for the Southern District of New York by BKX Services Inc. and trader David Namdar.

The plaintiffs claim they lost a combined 622.66 Bitcoin through forced liquidations on the BitMEX platform. BKX alleges losses of at least 305.81 BTC, while Namdar claims losses exceeding 316.85 BTC. They are asking the court to order the return of the Bitcoin they say was withheld, along with compensatory and punitive damages.

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