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Odaily Odaily News Crypto derivatives platform BitMEX is facing a proposed class action lawsuit, with BKX Services Inc. and David Namdar filing a complaint in the U.S. District Court for the Southern District of New York. The plaintiffs allege they incurred combined losses of 622.66 BTC from forced liquidations on BitMEX, with BKX claiming losses of at least 305.81 BTC and Namdar claiming losses exceeding 316.85 BTC. The complaint alleges that BitMEX's internal trading desk had access to customers' private information and could continue trading during periods when the server was frozen and regular users were unable to access or close positions. The plaintiffs further claim that BitMEX allowed customers to use leverage of up to 100x and would automatically liquidate positions when the collateral value was still twice the loss amount, with the remaining BTC entering the platform's insurance fund. The plaintiffs are seeking the return of the allegedly withheld Bitcoin, as well as compensatory and punitive damages. They intend to represent U.S. customers who purchased BTC swap products since July 23, 2018. On the same day the lawsuit was filed, BitMEX announced that following a strategic review by its owner, HDR Global Trading, it will cease providing services on September 23, has already stopped accepting new registrations, and plans to prohibit users from opening new positions starting August 26.
CZ expressed regret over BitMEX's closure announcement, recalling that BitMEX pioneered the 100x leveraged perpetual contract in the crypto market in 2014, driving industry development.CZ noted that BitMEX only supported BTC deposits and single-chain operations at the time, and adopted a once-daily, multi-signature wallet batch withdrawal process. These seemingly inconvenient designs, he said, actually helped the platform avoid hacker attacks over the long term.He also mentioned that BitMEX's four co-founders admitted to violating the Bank Secrecy Act (BSA) one month before their trial, each being fined $10 million and sentenced to home detention, with no prison time. However, CZ believes that BitMEX's business ultimately couldn't withstand the "War on Crypto" during the Biden administration.In conclusion, CZ stated that BitMEX is currently winding down in an orderly fashion, users can still withdraw assets, and he paid tribute to co-founder Arthur Hayes.