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FinanceBitMEX faces class-action lawsuit alleging Bitcoin theft and insider trading
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Cryptocurrency derivatives exchange BitMEX is facing a proposed class-action lawsuit alleging theft of Bitcoin and insider trading, filed on the same day the exchange announced it would shut down in three months. The lawsuit, brought by former tokenization project BKX Services and David Namdar, claims BKX lost at least 305 Bitcoin through forced liquidations, while Namdar alleges losses of 622 BTC worth $40.7 million. The complaint accuses BitMEX and co-founders Arthur Hayes, Ben Delo, and Samuel Reed of designing a system to retain customer collateral and transfer remaining Bitcoin to the platform's insurance fund. It also alleges an internal trading desk had access to private customer information and could trade during server freezes that prevented other users from closing positions. The plaintiffs seek return of their Bitcoin, compensatory damages, and punitive damages, and aim to include U.S. customers who bought BitMEX Bitcoin swap products from July 2018 onward. A judge must decide whether the case can proceed as a class action. BitMEX previously faced a similar lawsuit in 2020, which was closed in 2025 without a ruling.
Source report
CryptoProwl Fri, July 24, 2026 at 6:26 AM PDT 2 min read
- BTC -1.29%
Cryptocurrency exchange BitMEX may be shutting down, but its legal troubles appear far from over.
The crypto derivatives exchange that invented the perpetual swap faces a proposed class-action lawsuit alleging theft of Bitcoin (CRYPTO: $BTC) and insider trading.
The lawsuit was filed on the same day BitMEX announced it would shut down in three months.
Key Allegations
- The lawsuit has been filed by former tokenization project BKX Services and David Namdar.
- BKX claims it lost at least 305 Bitcoin through forced liquidations by BitMEX.
- David Namdar alleges losses of 622 BTC, worth $40.7 million U.S.
Background
The legal action comes as BitMEX recently stated it will cease operations on Sept. 23, ending an 11-year run as a leading crypto derivatives exchange.
This is not the first lawsuit BitMEX has faced. The company dealt with similar claims in a 2020 class-action legal case, which was closed in 2025 without a ruling.
Specific Claims
The new complaint alleges that BitMEX and co-founders Arthur Hayes, Ben Delo, and Samuel Reed designed a system to retain customers' collateral and transfer the remaining Bitcoin to the platform's insurance fund.
The lawsuit also states that an internal trading desk had access to private customer information and could continue trading during server freezes that prevented other users from closing positions.
BitMEX allowed traders to borrow up to 100 times their collateral and leverage their positions.
Legal Scope
The lawsuit, which is seeking to become a class action that could involve other investors, names parent company HDR Global Trading and the co-founders as respondents.
The plaintiffs say they want to involve U.S. customers who bought BitMEX Bitcoin swap products from July 2018 onward.
They are seeking the return of their Bitcoin, compensatory damages, and punitive damages. A judge must rule on whether the lawsuit can proceed as a class-action case.
Company Status
The exchange's closure follows the departure of BitMEX's CEO and chief financial officer (CFO) in June of this year.
BitMEX is privately held, and its stock does not trade on a public exchange.
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Source
Yahoo FinanceNeutral / independent
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BitMEX Announces Shutdown Amid Lawsuit Alleging Theft and Insider Trading