Lawsuit claims BitMEX used server freezes and internal trading to seize 622 Bitcoin ahead of its September closure

BitMEX customers are seeking the return of 622.66 Bitcoin in a proposed class action that accuses the exchange of engineering liquidations and retaining traders’ collateral. The complaint, filed July 23 in the Southern District of New York, arrived as BitMEX began a regulator-approved wind-down ahead of its September closure.BKX Services Inc. alleges it lost at least 305.809 BTC through BitMEX liquidations in 2018, while David Namdar claims 316.856 BTC in losses from 2019 to 2020. Together they seek the coins themselves, rather than only their dollar value, under claims for replevin and fraud.The suit names BitMEX operator HDR Global Trading Limited and four affiliated companies: ABS Global Trading Limited, 100x Holdings Limited, Shine Effort Inc Limited and HDR Global Services (Bermuda) Limited. Co-founders Arthur Hayes, Samuel Reed and Benjamin Delo are also defendants, along with Gregory Dwyer.The plaintiffs allege BitMEX’s liquidation engine closed positions when unrealized losses reached about half of the collateral traders had posted. According to the filing, that left collateral worth roughly twice the losses, but BitMEX seized the remainder and transferred it to its Insuran...