Arthur Hayes Sued Again as BitMEX Hit With New Class Action Lawsuit

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.

• BTC$ 64,861.53(-0.25%)

bitMEX bitMEX   BitMEX is an international derivatives exchange for cryptocurrencies that was founded back in 2014 by three individuals: Arthur Hayes, Ben Delo, and Samuel Reed. It is a crypto derivatives exchange created by HDR Global Trading Limited and known for launching perpetual swaps in Bitcoin and advanced trading system infrastructure.   The features of BitMEX include crypto derivatives, spot trading, tokenized world stocks, copy trading, crypto buying, and BMEX staking from one platform. Users are able to make trades with futures and perpetuals with a leveraged margin of up to 250× using a highly efficient matching engine, institutional APIs, and sophisticated risk management solutions. Security is a top priority of BitMEX since 95%+ of the money of customers is kept offline, the daily Proof of Reserves is provided, and the size of the insurance fund exceeds $250 million. With more than 2.1 million registered traders and more than 11 years without theft of clients' funds, BitMEX remains one of the best-known crypto derivatives exchanges.   BitMEX Details:   Attribute Details Parent Company HDR Global Trading Limited Supported Markets Spot Trading, Futures, Perpetual Contracts, Tokenized Stocks Supported Cryptocurrencies 100+ Digital Assets Native Token BMEX Mobile App Android & iOS API Support REST API & WebSocket API Cold Wallet Storage Over 95% of customer assets Security Features Multi-signature wallets, Cold Storage, 2FA, Proof of Reserves, Insurance Fund, Risk Management System Trading Fees Maker-Taker fee model with BMEX fee discounts Staking BMEX Staking Rewards Program BMEX Rewards Hub Best For Professional traders, derivatives traders, institutional investors, and active crypto traders Competitors Binance, Bybit, OKX, Deribit, Kraken, Bitget, MEXC   Key Features of Bitmex:   Trade spot, futures, perpetual contracts, and tokenized global stocks on one platform. Access up to 250× leverage for selected derivatives markets. Leverage the superior matching engine that boasts latency below 4 ms. Copy successful traders via our advanced Copy Trading system. Stake BMEX to get trading fee reductions, staking bonuses, and VIP treatment. Enjoy REST and WebSockets APIs suitable for automation of trades.   Bitmex Milestones:   Year Key Achievements 2014 Established by Arthur Hayes, Ben Delo, and Samuel Reed as an exchange for trading derivatives of Bitcoin. 2020 Began requiring user verification (KYC) to comply with evolving regulatory requirements. 2022 Introduced the BMEX token, offering staking rewards and trading fee discounts. 2025 Offers spot trading, crypto derivatives, tokenized global stocks, BMEX staking, Copy Trading, and institutional-grade trading infrastructure.   Products of Bitmex:   Spot Trading – Purchase and sell cryptocurrencies on the market. Perpetual Contracts – Cryptocurrency perpetual swaps up to 250× leverage. Futures Trading – Access leveraged futures contracts on major digital assets. Tokenized Global Stocks – Trade blockchain-based global stock products. Buy Crypto – Purchase cryptocurrencies using supported payment methods. Copy Trading - Follow and emulate the methods of professional traders. BMEX Staking – Stake BMEX tokens to earn rewards and trading fee discounts. Developer APIs – REST and WebSocket APIs for algorithmic and institutional trading.   arthur.hayes@bitmex.com Centralised Exchange

Arthur Hayes Arthur Hayes   Arthur Hayes is an investor and entrepreneur from the United States. He is the previous CEO of BitMEX, one of the top cryptocurrency derivatives exchanges globally. In 2014, he co-established BitMEX, facilitating cryptocurrency trading through leveraged Bitcoin futures.   He is often seen sharing his insights and views on the Bitcoin market. He also backs crypto-related projects and helps them gain momentum with his advice on the market.   Quick Facts   Full name Arthur Hayes Birth 1985, Detroit, Michigan Nationality American Education Economics & Finance from the Wharton School of Business  Marital status Married Net worth Estimated $500-700 million   Hayes previously worked at Deutsche Bank and Citigroup. While working at these fintech firms, Arthur concentrated on establishing crypto derivatives as a common standard. In 2021, he encountered legal problems concerning BitMEX's compliance. Nevertheless, he settled the matter through legal means.   Arthur Hayes - Timeline and Events   2016 – Launched the XBTUSD perpetual swap, revolutionizing crypto trading. 2018 – BitMEX became one of the largest Bitcoin trading platforms. 2020 – Faced legal scrutiny but remained a key industry figure. 2021 – Settled U.S. legal issues and stepped down as BitMEX CEO. 2022 – Focused on crypto investments and writing industry insights. 2023 – Advocated for Bitcoin adoption and decentralized finance (DeFi). 2024 – Continued shaping the digital asset space through investment and research.   Arthur has collaborated with various blockchain experts and engaged with innovative startups for the growth of crypto and Web3 innovations. He continues to be an influential voice in the crypto space and shares his perspectives on Bitcoin, DeFi, and blockchain regulations.   Useful Links to Connect With Arthur Hayes   Platform Link X (formerly Twitter) https://twitter.com/CryptoHayes LinkedIn https://www.linkedin.com/in/arthur-hayes BitMEX Website https://www.bitmex.com Personal Blog https://cryptohayes.substack.com EntrepreneurInvestorChief Executive OfficerTrader