BitMEX faces a proposed class action lawsuit alleging its co-founders ran a secret trading desk that used customer data to engineer liquidations, filed the same day the exchange announced it would shut down in September.
What Are The Plaintiffs Actually Alleging?
BKX Services Inc. and David Namdar filed the complaint in the US District Court for the Southern District of New York on Thursday, claiming combined losses of roughly 622.66 Bitcoin (CRYPTO: BTC), worth approximately $40.7 million at current prices, according to the filing.
The first allegation centers on a hidden trading desk that ran from BitMEX's Manhattan office throughout 2018 under former business development head Gregory Dwyer.
The desk used software to pinpoint which price moves would force the most customer liquidations, then traded to push prices to those exact levels.
