{"id":50739,"date":"2026-07-24T18:35:06","date_gmt":"2026-07-24T18:35:06","guid":{"rendered":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/"},"modified":"2026-07-24T18:35:06","modified_gmt":"2026-07-24T18:35:06","slug":"bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown","status":"publish","type":"post","link":"https:\/\/cryptd.in\/en\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/","title":{"rendered":"BitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown"},"content":{"rendered":"

BKX Services Inc. and David Namdar have filed a class action lawsuit against BitMEX.<\/p>\n

The plaintiffs accuse the exchange of market manipulation and misappropriating nearly 623 BTC due to forced liquidations.<\/p>\n

Lawsuit Questions BitMEX\u2019s Liquidation Practices<\/h2>\n

Filed on the same day the exchange announced it would shut down, the two claim<\/a> that BitMEX\u2019s internal trading team accessed customers\u2019 private information and continued trading while servers were down and users were unable to access the platform.<\/p>\n

BitMEX has faced accusations over its liquidation practices and internal trading advantages in the past, with the latest lawsuit reviving these allegations.<\/p>\n

According to the complaint, the exchange offered its customers leveraged trading of up to 100 times their collateral but allegedly liquidated their positions before all assets had been used up. This resulted in users losing their positions while the remaining BTC collateral was worth more than the losses incurred.<\/p>\n

Instead of refunding the excess BTC to traders, BitMEX allegedly redirected the funds to its insurance pool, which, according to the plaintiffs, made it possible for the platform to financially benefit from forced liquidations.<\/p>\n

\n

\u201cBitMEX deliberately developed a system that profited from the liquidations,\u201d read the filing.<\/p>\n<\/blockquote>\n

The filing also cites an old 2020 case where Brett Messieh and other traders sued the platform for similar offenses. Here, the group accused the company of rigging trading conditions in its favor, resulting in financial losses for users. But the court threw out the case for a lack of evidence.<\/p>\n

Traders Lost Almost 623 BTC<\/h2>\n

Namdar says they lost more than 316.85 BTC in the process, while BKX says its losses were around 305.81 BTC. As a result, the two are looking to recover their seized crypto and damages.\u00a0Furthermore, the proposed lawsuit seeks to represent U.S. customers who traded BTC perpetual swap products in transactions dating back to July 23, 2018.<\/p>\n

Earlier on Thursday, BitMEX owner HDR Global Trading said<\/a> it will shut down the exchange after a strategic review, with the decision expected to take effect on September 23. The platform has already suspended new account registrations, with traders now only allowed to close existing positions.<\/p>\n

Following the announcement, BitMEX co-founder Arthur Hayes thanked<\/a> his partners, employees, and customers for their support over the years.\u00a0\u201cIt was an amazing ride,\u201d he wrote, adding that he was proud the exchange was shutting down \u201cresponsibly on our own terms.\u201d<\/p>\n

The post BitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

BKX Services Inc. and David Namdar have filed a class action lawsuit against BitMEX. The plaintiffs accuse the exchange of market manipulation and misappropriating nearly 623 BTC due to forced liquidations. Lawsuit Questions BitMEX\u2019s Liquidation Practices Filed on the same day the exchange announced it would shut down, the two claim that BitMEX\u2019s internal trading […]<\/p>\n","protected":false},"author":1,"featured_media":50741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-50739","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feeds"],"yoast_head":"\nBitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown - cryptd.in<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptd.in\/en\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown - cryptd.in\" \/>\n<meta property=\"og:description\" content=\"BKX Services Inc. and David Namdar have filed a class action lawsuit against BitMEX. The plaintiffs accuse the exchange of market manipulation and misappropriating nearly 623 BTC due to forced liquidations. Lawsuit Questions BitMEX\u2019s Liquidation Practices Filed on the same day the exchange announced it would shut down, the two claim that BitMEX\u2019s internal trading […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptd.in\/en\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/\" \/>\n<meta property=\"og:site_name\" content=\"cryptd.in\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-24T18:35:06+00:00\" \/>\n<meta name=\"author\" content=\"cryptd.in\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cryptd.in\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/\"},\"author\":{\"name\":\"cryptd.in\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/#\\\/schema\\\/person\\\/7973e8183bc6723b86adfe84d5af0ce4\"},\"headline\":\"BitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown\",\"datePublished\":\"2026-07-24T18:35:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/\"},\"wordCount\":409,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cryptd.in\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/Bitmex-P7sQjn.jpg\",\"articleSection\":[\"Feeds\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/\",\"url\":\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/\",\"name\":\"BitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown - cryptd.in\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cryptd.in\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/Bitmex-P7sQjn.jpg\",\"datePublished\":\"2026-07-24T18:35:06+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/#primaryimage\",\"url\":\"https:\\\/\\\/cryptd.in\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/Bitmex-P7sQjn.jpg\",\"contentUrl\":\"https:\\\/\\\/cryptd.in\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/Bitmex-P7sQjn.jpg\",\"width\":1201,\"height\":720},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/cryptd.in\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"BitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/#website\",\"url\":\"https:\\\/\\\/cryptd.in\\\/\",\"name\":\"cryptd.in\",\"description\":\"Alternative LinkedIn for Crypto-friendly Talents\",\"publisher\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/cryptd.in\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/#organization\",\"name\":\"cryptd.in\",\"url\":\"https:\\\/\\\/cryptd.in\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/cryptd.in\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/cryptdin_logo.jpg\",\"contentUrl\":\"https:\\\/\\\/cryptd.in\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/cryptdin_logo.jpg\",\"width\":900,\"height\":900,\"caption\":\"cryptd.in\"},\"image\":{\"@id\":\"https:\\\/\\\/cryptd.in\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/#\\\/schema\\\/person\\\/7973e8183bc6723b86adfe84d5af0ce4\",\"name\":\"cryptd.in\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/cryptd.in\\\/wp-content\\\/litespeed\\\/avatar\\\/0b38230b9c4987de71d8ea131b2d0c60.jpg?ver=1784656550\",\"url\":\"https:\\\/\\\/cryptd.in\\\/wp-content\\\/litespeed\\\/avatar\\\/0b38230b9c4987de71d8ea131b2d0c60.jpg?ver=1784656550\",\"contentUrl\":\"https:\\\/\\\/cryptd.in\\\/wp-content\\\/litespeed\\\/avatar\\\/0b38230b9c4987de71d8ea131b2d0c60.jpg?ver=1784656550\",\"caption\":\"cryptd.in\"},\"sameAs\":[\"http:\\\/\\\/cryptd.in\"],\"url\":\"https:\\\/\\\/cryptd.in\\\/en\\\/author\\\/cryptd-in\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"BitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown - cryptd.in","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/cryptd.in\/en\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/","og_locale":"en_US","og_type":"article","og_title":"BitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown - cryptd.in","og_description":"BKX Services Inc. and David Namdar have filed a class action lawsuit against BitMEX. The plaintiffs accuse the exchange of market manipulation and misappropriating nearly 623 BTC due to forced liquidations. Lawsuit Questions BitMEX\u2019s Liquidation Practices Filed on the same day the exchange announced it would shut down, the two claim that BitMEX\u2019s internal trading […]","og_url":"https:\/\/cryptd.in\/en\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/","og_site_name":"cryptd.in","article_published_time":"2026-07-24T18:35:06+00:00","author":"cryptd.in","twitter_card":"summary_large_image","twitter_misc":{"Written by":"cryptd.in","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/#article","isPartOf":{"@id":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/"},"author":{"name":"cryptd.in","@id":"https:\/\/cryptd.in\/#\/schema\/person\/7973e8183bc6723b86adfe84d5af0ce4"},"headline":"BitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown","datePublished":"2026-07-24T18:35:06+00:00","mainEntityOfPage":{"@id":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/"},"wordCount":409,"commentCount":0,"publisher":{"@id":"https:\/\/cryptd.in\/#organization"},"image":{"@id":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/#primaryimage"},"thumbnailUrl":"https:\/\/cryptd.in\/wp-content\/uploads\/2026\/07\/Bitmex-P7sQjn.jpg","articleSection":["Feeds"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/","url":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/","name":"BitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown - cryptd.in","isPartOf":{"@id":"https:\/\/cryptd.in\/#website"},"primaryImageOfPage":{"@id":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/#primaryimage"},"image":{"@id":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/#primaryimage"},"thumbnailUrl":"https:\/\/cryptd.in\/wp-content\/uploads\/2026\/07\/Bitmex-P7sQjn.jpg","datePublished":"2026-07-24T18:35:06+00:00","breadcrumb":{"@id":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/#primaryimage","url":"https:\/\/cryptd.in\/wp-content\/uploads\/2026\/07\/Bitmex-P7sQjn.jpg","contentUrl":"https:\/\/cryptd.in\/wp-content\/uploads\/2026\/07\/Bitmex-P7sQjn.jpg","width":1201,"height":720},{"@type":"BreadcrumbList","@id":"https:\/\/cryptd.in\/bitmex-hit-with-623-btc-lawsuit-after-announcing-shutdown\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/cryptd.in\/"},{"@type":"ListItem","position":2,"name":"BitMEX Hit With 623 BTC Lawsuit After Announcing Shutdown"}]},{"@type":"WebSite","@id":"https:\/\/cryptd.in\/#website","url":"https:\/\/cryptd.in\/","name":"cryptd.in","description":"Alternative LinkedIn for Crypto-friendly Talents","publisher":{"@id":"https:\/\/cryptd.in\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/cryptd.in\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/cryptd.in\/#organization","name":"cryptd.in","url":"https:\/\/cryptd.in\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cryptd.in\/#\/schema\/logo\/image\/","url":"https:\/\/cryptd.in\/wp-content\/uploads\/2024\/05\/cryptdin_logo.jpg","contentUrl":"https:\/\/cryptd.in\/wp-content\/uploads\/2024\/05\/cryptdin_logo.jpg","width":900,"height":900,"caption":"cryptd.in"},"image":{"@id":"https:\/\/cryptd.in\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/cryptd.in\/#\/schema\/person\/7973e8183bc6723b86adfe84d5af0ce4","name":"cryptd.in","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cryptd.in\/wp-content\/litespeed\/avatar\/0b38230b9c4987de71d8ea131b2d0c60.jpg?ver=1784656550","url":"https:\/\/cryptd.in\/wp-content\/litespeed\/avatar\/0b38230b9c4987de71d8ea131b2d0c60.jpg?ver=1784656550","contentUrl":"https:\/\/cryptd.in\/wp-content\/litespeed\/avatar\/0b38230b9c4987de71d8ea131b2d0c60.jpg?ver=1784656550","caption":"cryptd.in"},"sameAs":["http:\/\/cryptd.in"],"url":"https:\/\/cryptd.in\/en\/author\/cryptd-in\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptd.in\/en\/wp-json\/wp\/v2\/posts\/50739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptd.in\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptd.in\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptd.in\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptd.in\/en\/wp-json\/wp\/v2\/comments?post=50739"}],"version-history":[{"count":0,"href":"https:\/\/cryptd.in\/en\/wp-json\/wp\/v2\/posts\/50739\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptd.in\/en\/wp-json\/wp\/v2\/media\/50741"}],"wp:attachment":[{"href":"https:\/\/cryptd.in\/en\/wp-json\/wp\/v2\/media?parent=50739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptd.in\/en\/wp-json\/wp\/v2\/categories?post=50739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptd.in\/en\/wp-json\/wp\/v2\/tags?post=50739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}