BitMEX Hit with 623 BTC Lawsuit on the Very Day It Announces Shutdown
BitMEX is facing a massive legal blow as a new class action lawsuit accuses the crypto derivatives platform of engineering fraudulent liquidations. The plaintiffs allege that the exchange used privileged trading access and strategic server freezes to seize Bitcoin collateral from unsuspecting traders through forced liquidations.
Filed in the US District Court for the Southern District of New York, the lawsuit claims total losses exceeding 622 BTC. This legal crisis arrives at the worst possible timing, coinciding with the exchange's announcement that it will officially shut down its operations this September.
The plaintiffs claim a combined loss of 622.66 BTC, with BKX claiming at least 305.81 BTC and Namdar alleging losses exceeding 316.85 BTC. The lawsuit revives long-standing allegations regarding the platform’s internal trading operations and liquidation engine, coming just as the exchange prepares to close in September.
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