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Cryptohopper announces BitMEX hit with lawsuit claiming exchange engineered liquidations and redirected BTC
Cryptohopper reported that BitMEX is facing a class-action lawsuit alleging the exchange intentionally triggered user liquidations to seize excess Bitcoin, with the complaint seeking the recovery of over 622 BTC. BitMEX denies the allegations and has announced its upcoming shutdown.
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A class-action lawsuit has been filed against BitMEX and its founders, including BKX Services Inc. and trader David Namdar, alleging that the exchange deliberately engineered liquidation mechanisms to forcibly liquidate user positions and redirect excess Bitcoin into its Insurance Fund. The legal complaint, submitted in the Southern District of New York on July 24, 2026, claims combined losses of over 622 BTC and references specific incidents such as a March 2020 server lockout during high market volatility, which plaintiffs allege was used to the exchange's advantage.
The lawsuit seeks class certification and the return of the affected Bitcoin, as well as additional damages. BitMEX has denied the allegations, describing them as lacking merit and opportunistic, and the legal action coincides with the exchange's announced shutdown scheduled for September 2026.
Cryptohopper is a multi-functional platform offering trading in Bitcoin, Ethereum, Litecoin, and various other cryptocurrencies and tokens through its terminal connected with multiple partner exchanges. The platform provides features such as auto-trading bots (with a limited free trial), copy trading services, investment portfolio management, account synchronization across exchanges, and an in-depth training system. For more details, see the full broker profile on Traders Union.
In case you missed it, our earlier news about Cryptohopper covered their initiative to reduce signal latency by 40 milliseconds, aiming to enhance the speed and precision of trade execution. For more details, see the previous Cryptohopper update on Traders Union.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
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