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BKX Services, David Namdar sue BitMEX over 622.66 BTC liquidations

BKX Services, David Namdar sue BitMEX over 622.66 BTC liquidations

New York complaint alleges BitMEX retained customer collateral and exposed private trading data to an internal desk during server outages, as the exchange prepares to cease trading on Sept. 23.

BTC

Fact Check
Every element of the claim is corroborated by multiple independent sources. Cointelegraph and CoinNess both confirm BKX Services and David Namdar filed a New York (SDNY) complaint alleging BitMEX's internal desk traded on private customer data during server freezes, with a combined loss of 622.66 BTC. OffshoreAlert's docket-linked case listing confirms the July 23, 2026 SDNY filing, both named plaintiffs, and the 'Insider Trading Desk' allegation. The separate Cointelegraph shutdown article confirms BitMEX's announcement to cease services on September 23, 2026.
Summary

BKX Services Inc. and David Namdar have sued BitMEX in the U.S. District Court for the Southern District of New York, alleging they lost a combined 622.66 BTC through forced liquidations and that the exchange’s system was designed to retain customer collateral. The complaint says BitMEX’s internal trading desk could access non-public customer information and continue trading during server outages, raising questions about customer asset handling, internal information barriers, and risk controls during market stress. The plaintiffs seek the return of the bitcoin plus compensatory and punitive damages, and aim to represent U.S. customers who traded Bitcoin perpetual swaps dating back to July 23, 2018. Separately, HDR Global Trading has said BitMEX will wind down its exchange business, with trading ending at 04:00 UTC on Sept. 23.

Terms & Concepts
  • forced liquidations: Automatic closure of leveraged positions when an exchange determines collateral is insufficient.
  • insurance fund: A reserve used by derivatives platforms to absorb losses from liquidated positions.
  • perpetual swap products: Crypto derivatives contracts that track an underlying asset without a fixed expiry date.