BitMEX Sued for Market Manipulation, Claims Exceed $40 Million

The cryptocurrency exchange BitMEX has been sued in federal court in New York for allegedly using confidential customer data to force liquidations of positions. The value of the claims exceeds $40 million, and the exchange's management firmly denies all allegations. The lawsuit points to the existence of an undisclosed trading team in 2018 that had access to detailed user information, allowing for the identification of price levels for automatic liquidations. Additionally, the lawsuit refers to events on March 13, 2020, when users were unable to access the platform for about 25 minutes, resulting in the automatic liquidation of positions worth approximately $800 million. The plaintiffs claim that the exchange intentionally suspended system operations. BitMEX CEO Peter Wilkinson described the lawsuit as baseless and announced plans to defend against it in court. The new lawsuit involves approximately 622.7 BTC, which the plaintiffs are seeking to recover, arguing that it was unlawfully lost. The case may also affect other users who traded Bitcoin contracts since July 2018. Previously, BitMEX admitted to violations of anti-money laundering regulations, which also drew the attention of regulatory authorities.

Disclaimer: This content is provided for general branding and informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online events, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets or to use any services. Crypto assets are highly volatile and may result in loss. WEEX services and online events may not be available in all regions and are subject to applicable laws, regulations, and eligibility requirements. You are responsible for ensuring that your use of WEEX services complies with local laws and for carefully assessing the risks before participating in any crypto-related activities.