Customers Sue BitMEX, Seek Return of 622.67 Bitcoin

Plaintiffs filed suit on July 23 in the Southern District of New York seeking the return of 622.665 Bitcoin they say were taken through forced liquidations on the BitMEX exchange.

The complaint was brought by BKX Services Inc., which claims at least 305.809 BTC were lost in 2018, and trader David Namdar, who asserts losses of 316.856 BTC between 2019 and 2020. They name HDR Global Trading Limited, BitMEX’s operator, along with four affiliated companies and co-founders Arthur Hayes, Samuel Reed and Benjamin Delo, plus executive Gregory Dwyer as defendants.

The filing alleges BitMEX’s liquidation engine closed positions when unrealized losses reached roughly half of posted collateral. According to the complaint, that process left collateral that exceeded the actual losses. Instead of returning the excess to traders, plaintiffs contend the exchange transferred those funds into its Insurance Fund.

The complaint also describes an internal, undisclosed trading desk that allegedly could view customer positions, hidden orders and liquidation points. Plaintiffs claim the desk used anonymized accounts to trade, continued trading during platform outages that locked ordinary customers out, and traded on outside reference exchanges to move prices and induce liquidations.

Those actions, the complaint says, allowed the defendants to capture collateral tied to forced liquidations. The filing brings claims for replevin and fraud and asks the court to order the return of the specific Bitcoin rather than only monetary damages measured in dollars. The allegations in the complaint have not been proven in court.

The suit revisits conduct referenced in an earlier class action under the Commodity Exchange Act filed in 2020 and voluntarily dismissed without prejudice in June 2025. The current complaint argues the earlier litigation tolled the statute of limitations.

BitMEX rejected the allegations. CEO Peter Wilkinson described the complaint as “spurious and opportunistic” and indicated the company intends to defend itself vigorously.

BitMEX is operating under a regulator-approved wind-down plan that limits HDR to closing positions, returning client-held assets and winding down operations prior to a planned cessation of services on Sept. 23. On July 23, HDR withdrew a pending virtual-asset licence application with the Financial Services Authority of Seychelles. A closure notice says users will retain access after Sept. 23 to view balances and withdraw funds and that the company’s assets exceed its liabilities.

The wind-down plan covers client-held assets but does not address Bitcoin disputed through historical liquidations. Plaintiffs say that gap increases the urgency of resolving ownership claims. The case will proceed in federal court in Manhattan, where parties are expected to litigate whether the alleged internal trading activity occurred and whether BitMEX improperly retained customer collateral.