A class-action suit in the Southern District of New York accuses BitMEX of fraudulently engineering customer liquidations to seize Bitcoin collateral, alleging an internal trading desk had access to private customer information and could trade during server freezes.

Plaintiffs BKX Services Inc. and David Namdar claim losses of about 622.66 BTC from forced liquidations, with specific allocations of BTC among BKX and Namdar, and seek return of withheld BTC plus compensatory and punitive damages.

The complaint targets HDR Global Trading as the parent company and co-founders Arthur Hayes, Ben Delo, and Samuel Reed, seeking return of bitcoin and damages for U.S. customers who bought BitMEX bitcoin swap products since July 23, 2018.

An earlier, similar case (Messieh v. HDR Global Trading) filed in 2020 ended in voluntary dismissal in 2025; plaintiffs claim tolling of the statute of limitations during that period.

Cointelegraph notes BitMEX had previous allegations, including a 2020 class action under the Commodity Exchange Act that was dismissed without prejudice in 2025, highlighting ongoing scrutiny of liquidation practices.

The article suggests BitMEX’s shutdown could be influenced by the ongoing legal action, depending on court outcomes.

Background notes BitMEX’s past legal battles; the founder trio reportedly received presidential pardons in March 2026, though BitMEX denied merit to those claims.

The lawsuit was filed on the same day BitMEX announced it would shut down after 11 years, with a shutdown date set for late September 2026 and new-position restrictions starting in late August 2026.

The Block reports BitMEX will cease operations on September 23, 2026, following a strategic review by HDR Global Trading, with ongoing operations until then.

The filing aligns with BitMEX’s shutdown announcement, revealing plans to end services after the review, halt new registrations, and block new positions from late August.

A notable 25-minute platform lockout on March 13, 2020, during which about $800 million in leveraged positions were liquidated, is cited as evidence of deliberate freezing rather than a hardware issue or DDoS.

BitMEX previously pled guilty in 2024 to Bank Secrecy Act violations and faced an additional $100 million fine in January 2025; co-founders were reportedly pardoned by a former president in March 2025.