BitMEX sued for forced liquidations just before closure

BitMEX faces a class action lawsuit alleging that the crypto exchange deliberately forced liquidations of clients in order to seize their collateral. According to the complaint, the platform obtained approximately 623 Bitcoin from users through these practices. This comes at the same time as the exchange prepares for final closure.

Forced liquidations under fire

The lawsuit targets BitMEX’s core business: offering leveraged trading opportunities for crypto traders. Users now claim that the exchange intentionally liquidated their positions when Bitcoin was trading around $65.000. They allege this was done with the aim of seizing their collateral.

For BitMEX, this is a serious problem. The company has faced accusations for years that it unfairly liquidated users during volatile market periods. These allegations are now resurfacing in legal form, precisely as the exchange nears its end.

Timing raises concerns

The timing of this lawsuit is striking. BitMEX announced yesterday that it will completely cease operations. Claimants now feel cheated because they may never receive compensation if the company is fully dissolved. The loss of approximately 623 Bitcoin represents a significant amount of wealth that, according to the plaintiffs, was taken without proper justification.

The case highlights long-running tensions between trading platforms and their users over liquidation mechanisms. BitMEX has always maintained that liquidations are part of the risk that traders accept, but this class action suggests the platform went beyond normal practice.