BitMEX Sued for Allegedly Using 'God Access' to Force Customer Liquidations, 600 BTC Losses Claimed

BitMEX and its co-founders were sued on Thursday in the Southern District of New York, accused of manipulating crypto derivatives trades to seize customer collateral. According to the complaint filed by BKX Services and David Namdar, the exchange used so-called "god access" to private customer data to execute strategic trades against users, while intentionally freezing servers during volatile market periods to prevent customers from adjusting positions.

Plaintiffs allege BitMEX seized 100% of customers' collateral despite losses reaching only 50%, with over 600 BTC lost to forced liquidations. The lawsuit names co-founders Arthur Hayes and Samuel Reed, as well as executives Benjamin Delo and Gregory Dwyer as defendants, and seeks class-action certification and recovery of the lost BTC in addition to compensatory damages.