(SeaPRwire) –
By: Oliver Hawthorne
The crypto space is reeling from fresh allegations against BitMEX and its co-founders. Former users have filed a class action lawsuit claiming the exchange operated a secret “Insider Trading Desk” that traded against customers. BKX Services and David Namdar are at the center, alleging combined losses of roughly 622.66 BTC. The lawsuit charges BitMEX with using private customer data to manipulate trades, presenting itself as a neutral platform while secretly working against users.
Details in the complaint show BitMEX had access to customer order data and liquidation points. It allegedly used hidden internal accounts to mask its own trading, leading users to believe they were only trading against other market participants. The suit also targets the 2020 market crash, claiming customers were deliberately locked out for 25 minutes while $800 million in leveraged positions were liquidated. BitMEX previously blamed hardware issues, but the lawsuit calls those freezes intentional and uncompensated.
Plaintiffs are seeking the return of Bitcoin, not just cash damages, under claims of replevin and fraud. The proposed class includes thousands of users who traded Bitcoin swaps on BitMEX from 2018 onward. BitMEX, which plans to cease operations in 2026 after 11 years, faced earlier legal action over anti-money laundering violations. This case highlights the ongoing trust issues in crypto exchanges and the need for greater transparency. Author bio: Oliver Hawthorne, Principal Correspondent at an international tech review, specializing in dissecting the complexities of the crypto industry and its regulatory landscape.