A class-action lawsuit has been filed against cryptocurrency exchange BitMEX and its founders in the U. S.
District Court for the Southern District of New York.
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The complaint, submitted on July 24, 2026, accuses the platform of manipulating crypto derivatives trading to seize customer collateral.
The lawsuit was brought by Nevada-based BKX Services and investor David Namdar.
It targets co-founders Arthur Hayes, Samuel Reed, Benjamin Delo, and former head of business development Gregory Dwyer.
Allegations of Insider Trading and Liquidations
According to the plaintiffs, BitMEX operated an internal trading desk that used undisclosed access to confidential client data.
The exchange allegedly executed trades against its own users using anonymous burner accounts to place strategic orders and force widespread liquidations.
The complaint further claims that BitMEX deliberately blocked server access during periods of extreme market volatility.
This prevented locked-out traders from adjusting their collateral or managing active positions, while insider trading capabilities were preserved.
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The legal action seeks the recovery of more than 600 Bitcoin lost through forced liquidations, along with financial damages.
The plaintiffs allege that the liquidation system confiscated 100% of customer collateral even when position losses totaled only 50%, directing the proceeds into an exchange-controlled insurance fund.
BitMEX is scheduled to permanently close its trading platform on September 23, 2026. The exchange previously settled an Anti-Money Laundering enforcement action with the U.
S. Department of Justice in January 2025, paying $100 million in penalties for Bank Secrecy Act violations.
Market analysts note that broader exchange closures are affecting market behavior.
Analyst TradingShot observed that historical exchange disruptions have typically aligned with late-stage bear market capitulation phases, projecting potential price floors around $45,000 by early fourth-quarter 2026.
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Short-term analysis from Ali Martinez identifies key operational support at $63,800, with potential movements toward $67,000 or $60,000 depending on price retention.
