BitMEX is preparing to end exchange operations while facing two lawsuits challenging historical liquidation practices on its derivatives platform. The Celsius bankruptcy estate is seeking the return of 6,360.1666 BTC, while a separate proposed class action alleges losses totaling 622.66 BTC, placing the exchange’s liquidation engine and internal trading practices under renewed legal scrutiny as its operating wind-down enters its final days.
According to BitMEX’s official closure announcement, exchange services will cease on September 23 at 04:00 UTC and any positions still open at that point will be force-closed. Trading has already been progressively restricted and contracts settled early, although customers will retain account access after closure for balance checks and withdrawals.
Celsius Seeks 6,360 BTC From BitMEX
The Celsius estate filed its complaint on September 12 in U.S. Bankruptcy Court for the Southern District of New York through litigation administrator Blockchain Recovery Investment Consortium. The estate alleges that wrongful liquidations during the March 2020 market crash cost Celsius and investment fund JST a combined 6,360.1666 BTC, worth approximately $495 million when the complaint was filed.
The case names HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings and HDR Global Services. Celsius alleges that BitMEX controlled both the mechanism determining when positions were liquidated and an insurance fund that benefited from successful liquidations, arguing that the structure intensified forced selling during the March 12-13 crash. The defendants had not filed a response when the latest public reporting was published, and the allegations have not been adjudicated.
A separate federal court docket for BKX Services and David Namdar confirms that the proposed class action was filed July 23 against five BitMEX entities, co-founders Arthur Hayes, Benjamin Delo and Samuel Reed, and former executive Gregory Dwyer. The plaintiffs allege that BitMEX operated an undisclosed internal trading desk with access to information unavailable to ordinary customers and used its liquidation structure to retain Bitcoin collateral.
Legal Claims Outlive Exchange Closure
BKX and Namdar claim combined losses of approximately 622.66 BTC from forced liquidations. Their complaint also alleges that privileged internal traders could continue operating or exploit customer information during periods when ordinary users experienced platform outages, including episodes of extreme market volatility. Those claims remain allegations at the complaint stage rather than established findings of misconduct.
The litigation arrives against an established regulatory history. BitMEX founders Hayes, Delo and Reed pleaded guilty in 2022 to Bank Secrecy Act violations involving failures to maintain an adequate anti-money-laundering program, while BitMEX itself pleaded guilty to a related BSA offense in 2024.
BitMEX says its closure resulted from a strategic review of the business and broader crypto industry rather than financial distress, hacks or immediate regulatory pressure. Ending trading on September 23 will not terminate the pending legal claims against the corporate entities behind the exchange, leaving the Celsius recovery action and proposed class case as separate proceedings to watch after BitMEX’s trading platform goes offline.
