Former BitMEX Customers File Class Action Suit on Closure Day Amid 'Insider Trading' Allegations

Two former BitMEX customers filed a class action lawsuit against BitMEX and three co-founders, alleging the exchange operated a secret 'insider trading desk' using customer account information to execute counter-directional trades. Plaintiffs claim BitMEX intentionally halted servers during high-volatility periods to trigger forced liquidations, naming Arthur Hayes, Samuel Reed, Benjamin Delo, and former head of business development Gregory Dwyer as defendants. HDR Global Trading and four affiliated companies are also included. The lawsuit alleges BitMEX liquidated positions when unrealized losses reached half of the margin, despite remaining margin exceeding losses, and that Dwyer operated the desk from Manhattan offices in 2018 to manipulate liquidation triggers via software analysis.