BitMEX Lawsuit Alleges Rigged Bitcoin Liquidations Before Shutdown

A proposed U.S. class action accuses BitMEX of profiting from alleged rigged Bitcoin liquidations. Filed in the Southern District of New York by BKX Services Inc. and trader David Namdar, the complaint claims total losses of about 622.66 BTC tied to forced liquidations on BitMEX’s Bitcoin perpetual swap market. The plaintiffs allege BitMEX allowed up to 100x leverage but liquidated positions before collateral was fully exhausted. They also claim remaining BTC was moved into BitMEX’s insurance fund rather than returned to customers. A key allegation is that BitMEX’s internal trading desk had access to non-public customer data and continued trading during server outages, while regular users could not properly manage or close positions. BitMEX denies the claims and says it has defended similar lawsuits. The lawsuit coincides with BitMEX confirming it will shut down permanently in September. New registrations are suspended. From August 26, users can only reduce positions; any open positions will be automatically liquidated using BitMEX procedures. Customers can still withdraw funds and access records after trading ends. Regulatory context remains in focus: in 2020, U.S. authorities charged BitMEX founders over anti-money laundering controls, and the exchange later pleaded guilty and changed management. More recently, BitMEX appointed Peter Wilkinson as CEO. After the shutdown announcement, the BMEX utility token was reported to drop sharply (~90%). For traders, the BitMEX lawsuit and shutdown process raise questions about liquidation mechanics, refund expectations, and risk management in high-leverage perpetual markets—especially around operational incidents and collateral handling.