BitMEX hit with 623 BTC lawsuit on day it announces shutdown

BitMEX faces a proposed class-action lawsuit in New York accusing the crypto derivatives exchange of engineering customer liquidations through privileged internal trading access and server freezes. Plaintiffs BKX Services and David Namdar say they lost a combined 622.66 BTC and are seeking the return of withheld Bitcoin plus compensatory and punitive damages. The case revives prior allegations dating back to 2020 and comes as BitMEX announces it will shut down in September after 11 years, stop new registrations, and block new positions starting August 26. The news adds legal and operational pressure on the exchange, while also highlighting ongoing scrutiny of liquidation practices across crypto derivatives platforms.