BitMEX announced its closure the same day it faced a 623 BTC lawsuit, accusing it of manipulating liquidations for profit.

BlockBeats News, July 24th - On the same day that the cryptocurrency derivatives trading platform BitMEX announced it would be closing its operation in September, it faced a class-action lawsuit accusing the platform of manipulating user liquidations through internal trading permissions and system mechanisms to profit from forced liquidations.

BKX Services Inc. and David Namdar filed a lawsuit on Thursday in the Southern District of New York against BitMEX, alleging that BitMEX engaged in fraudulent design of its liquidation mechanism, resulting in users losing a total of 622.66 BTC. BKX claimed a loss of at least 305.81 BTC, while Namdar claimed a loss of over 316.85 BTC.

The plaintiffs alleged that BitMEX's internal trading team had access to users' private trading information and continued to trade during periods when regular users were unable to close their positions due to server freezes, profiting from forced liquidations.

According to the lawsuit, BitMEX allowed users to leverage up to 100 times. When a user's position was liquidated, even if the collateral value still exceeded the actual loss, the platform would automatically liquidate and transfer the remaining BTC to the insurance fund.

The plaintiffs requested the return of withheld BTC, sought compensatory and punitive damages, and hoped to represent U.S. users who have participated in BitMEX BTC perpetual swap trading since July 23, 2018.

This lawsuit has once again stirred controversy over BitMEX's long-standing liquidation mechanism. Previously, in 2020, users initiated a class-action lawsuit against similar allegations. The case was voluntarily dismissed on June 30, 2025, without prejudice for future re-filing.