BitMEX sued for allegedly profiting from customer Bitcoin liquidations

BitMEX has been hit with a proposed class action lawsuit in the United States accusing the cryptocurrency derivatives exchange of engineering customer liquidations that allegedly allowed it to retain hundreds of Bitcoin before its planned September shutdown. Summary BitMEX has been sued in a proposed class action alleging it engineered customer liquidations to retain hundreds of Bitcoin. The plaintiffs are seeking the return of 622.66 BTC along with compensatory and punitive damages on behalf of eligible US traders. The lawsuit was filed on the same day BitMEX confirmed it will shut down its exchange operations in September. Court filings in the U.S. District Court for the Southern District of New York show that BKX Services Inc. and trader David Namdar filed the complaint on Thursday, alleging they lost a combined 622.66 BTC through forced liquidations on BitMEX. BKX claims losses of at least 305.81 BTC, while Namdar alleges losses exceeding 316.85 BTC. Filed on the same day BitMEX confirmed it would wind down its exchange business, the lawsuit revives allegations that have circulated around the platform’s liquidation system for years. The plaintiffs argue that the exchange’s inte...