11-Year-Old Giant BitMEX Shaken Upon Closure: $40 Million Shock Lawsuit Against Its Founders

BitMEX, one of the most established exchanges in the cryptocurrency world, was shaken by serious allegations of theft and insider trading against its founders on the day it announced it would terminate its 11-year operations.

BitMEX, which marked an era in the industry and invented perpetual futures contracts, is preparing to completely close its doors on September 23. However, the exchange’s farewell decision was overshadowed by a massive class-action lawsuit filed in the U.S. District Court for the Southern District of New York, claiming a total loss equivalent to 622.66 Bitcoin (BTC). The lawsuit, filed on July 23, coincided with the same day as the exchange’s closure announcement, initiating a dramatic showdown over its 11-year historical legacy.

$40 Million Theft Allegation Against BitMEX Founders

Plaintiffs BKX Services and David Namdar allege that the exchange’s founders Arthur Hayes, Ben Delo, and Samuel Reed designed a special system to wrongfully seize customer collateral. According to the claim, the platform forcibly liquidated (the closing of a position by the exchange) users’ positions while their collateral was still at sufficient levels, transferring the remaining balances to its own insurance fund. This loss, valued at approximately 40.7 million dollars, is seen as the largest legal obstacle in the exchange’s closing process.

Another striking allegation in the court documents focuses on insider trading. It is stated that the exchange’s internal trading desk gained an advantage by accessing private data during server freezes when other users were unable to trade. Similar allegations surfaced in 2020, but the case concluded without reaching a verdict in June 2025. Now, this new process, which is awaiting judicial approval to gain class-action status, will continue to remain on the industry’s agenda until BitMEX‘s final closure on September 23.