BitMEX and its founders, Arthur Hayes, Samuel Reed, and Ben Delo, are facing a new class action lawsuit just one day after the crypto derivatives exchange shut down. The lawsuit alleges the exchange secretly traded against its own users through an internal trading desk, with plaintiffs BKX Services and David Namdar claiming combined losses of 622.66 BTC (about $40.7 million).
BitMEX, Founders Named in New Class Action
The lawsuit was filed on July 23, 2026, in the U.S. District Court for the Southern District of New York by BKX Services Inc. and David Namdar on behalf of a proposed class of BitMEX users.
The complaint names HDR Global Trading Limited, along with BitMEX co-founders Arthur Hayes, Ben Delo, Samuel Reed, and former executive Gregory Dwyer as defendants. The plaintiffs allege the exchange secretly operated what it calls an “Insider Trading Desk” that traded directly against customers while publicly presenting itself as a neutral marketplace.
According to the complaint, BitMEX allegedly had privileged access to customer orders, including so-called “hidden orders,” giving insiders an unfair trading advantage that ordinary users could not see.
The lawsuit claims customers believed they were trading only against other market participants when, according to the filing, BitMEX itself was allegedly taking the opposite side of trades.
Complaint Alleges Hidden Trading Desk Profited From Customer Liquidations
One of the central allegations is that BitMEX allegedly used the internal desk to profit from customer liquidations while generating more trading fees.
According to the filing, the exchange earned more than $1 billion in transaction fees between November 2014 and October 2024, while its flagship XBTUSD perpetual contract processed over $2 trillion in trading volume during that period.
The plaintiffs also claim they suffered significant Bitcoin losses while trading on the platform. BKX Services alleges losses totaling 305.80903296 BTC, while David Namdar claims losses of 316.85578220 BTC through multiple liquidations. The complaint further alleges that customers collectively lost thousands of Bitcoin as a result of the exchange’s alleged conduct.
The lawsuit also revisits the March 13, 2020 market crash, claiming that around $800 million worth of leveraged positions were liquidated while many users were allegedly unable to access the exchange because of system outages.
According to the complaint, the alleged insider trading operation continued functioning during the disruption. The filing argues that these events allowed BitMEX to generate what it describes as “ill-gotten gains” through trading fees, customer liquidations, and its growing Insurance Fund.
Plaintiffs Seek Return of Bitcoin
The plaintiffs are asking the court to certify the case as a class action and order BitMEX to return customers’ Bitcoin. They are also seeking compensatory and punitive damages, legal fees, court costs, and interest.
According to the complaint, users would not have traded on BitMEX if they had known about the alleged hidden trading desk.
The lawsuit comes just one day after BitMEX shut down its exchange. It also follows the platform’s 2020 legal troubles, when U.S. regulators charged the company over anti-money laundering and Bank Secrecy Act violations.
This new case shifts the focus to how BitMEX allegedly handled customer trades internally.
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