A new lawsuit accuses BitMEX of using a so-called 'God access' to force customer liquidations. The complaint, filed in a U.S. court, names former CEO Arthur Hayes and former CTO Samuel Reed as defendants. It alleges the exchange ran a fraudulent scheme that traded against its own users.
The 'God Access' System
The lawsuit claims BitMEX maintained an internal system that gave certain employees privileged access to customer data and trading activity. This 'God access' allowed them to see when large positions were at risk. The complaint says the exchange then used that information to trade against those customers, forcing liquidations that benefited BitMEX and its insiders.
The Insider Desk
According to the complaint, an insider desk managed by Head of Business Development Gregory Dwyer was used to execute trades against BitMEX users. The desk allegedly had an unfair advantage, using the platform's own data to front-run customers. The suit describes this as a fraudulent scheme.
The Defendants
Arthur Hayes, who stepped down as CEO in 2020, and Samuel Reed, former CTO, are both named. The allegations suggest they were aware of or directed the scheme. Gregory Dwyer is also named for his role in managing the insider desk that traded against users.
The Alleged Fraud
The exchange is accused of operating a fraudulent scheme that systematically traded against its own users. The lawsuit claims this was not an isolated incident but a deliberate practice that exploited customers for the exchange's gain. The 'God access' system was central to this alleged fraud, giving insiders an edge that ordinary traders didn't have.
The case is now before the court. The allegations have not been tested in court.
