BitMEX sued for engineering customer liquidations to seize traders’ Bitcoin collateral
- The lawsuit was filed the day BitMEX announced its shutdown.
- Lawsuit alleges excess Bitcoin collateral was retained.
- Plaintiffs claim losses totalling 622.66 BTC.
BitMEX is facing fresh legal trouble after a class-action lawsuit accused the cryptocurrency derivatives exchange of deliberately engineering customer liquidations to take possession of traders' Bitcoin collateral.
The lawsuit was filed on the same day the company announced plans to shut down its operations, placing renewed attention on allegations surrounding its liquidation system and trading practices.
The case, filed in the US District Court for the Southern District of New York, seeks to recover hundreds of bitcoins that the plaintiffs claim were wrongfully taken through forced liquidations.
Lawsuit claims more than 622 Bitcoin were wrongfully seized
The lawsuit was brought by BKX Services Inc. and investor David Namdar, who allege they collectively lost 622.66 BTC because of BitMEX's liquidation process.
According to the complaint, BKX Services lost at least 305.81 BTC, while David Namdar claims losses exceeding 316.85 BTC.
… Continue reading the full article at the original source below.
