BitMEX is facing a proposed class action in the Southern District of New York that demands the return of 622.66 Bitcoin—worth roughly $40.7 million. The complaint, filed July 23, 2026, by BKX Services Inc. and David Namdar, alleges the exchange operated an internal trading desk that traded against users, and that platform freezes triggered forced liquidations. The suit names HDR Global Trading Limited, Arthur Hayes, Benjamin Delo, Samuel Reed, and Gregory Dwyer as defendants.
The allegations
Plaintiffs claim BitMEX's internal trading desk had access to customer data and used that information to trade against its own users. They also allege that exchange freezes—server outages or withdrawal halts—made it impossible for them to manage their margin risk, leading to liquidations they could have avoided. The complaint specifically asks for the return of more than 622 BTC. These are allegations at the complaint stage; no wrongdoing has been proven, and BitMEX has not yet filed a response.
Who's being sued
The defendants are a who's who of BitMEX's founding era: Arthur Hayes, Benjamin Delo, Samuel Reed, and Gregory Dwyer, plus the parent company HDR Global Trading Limited. All four individuals were named in a separate CFTC and DOJ enforcement action in 2020 over anti-money-laundering failures, which they later settled. This civil suit raises a different set of claims—platform transparency, conflicts of interest, and the fairness of liquidation mechanics.
Wind-down doesn't erase legal risk
BitMEX has a planned termination of operations on September 23, 2026. The exchange is winding down, but that doesn't automatically resolve existing legal exposure. In fact, a wind-down can make litigation more urgent: creditors and plaintiffs press claims before assets are distributed. The timing of this suit—just two months before the shutdown—suggests the plaintiffs want to ensure any recovery is tied to assets still controlled by the defendants.
What happens next
The case is docketed as No. 1:26-cv-06259. BitMEX will have to respond to the complaint, likely with a motion to dismiss or an answer. Forced liquidations are standard in leveraged crypto trading, but the core question here is whether BitMEX's own conduct made those liquidations unfair—or avoidable. The court will have to decide whether the allegations amount to a viable class claim. No hearing has been set yet.
