BitMEX Co-Founders Face Fraud Lawsuit Over Alleged 'Insider Trading Desk' as Exchange Shuts Down

According to The Block, two former BitMEX customers filed a proposed class action lawsuit against BitMEX co-founders Arthur Hayes, Samuel Reed, Benjamin Delo, and Gregory Dwyer on July 24, 2026, alleging the exchange operated an undisclosed 'Insider Trading Desk' that traded against customers using private account data.

Plaintiffs BKX Services and David Namdar claim BitMEX deliberately froze servers during high volatility to force liquidations. BKX Services says it lost approximately 305.8 BTC across 13 liquidations between July and August 2018; Namdar claims about 316.9 BTC in losses from August 2019 to May 2020. The lawsuit names HDR Global Trading Limited and affiliated entities as defendants. The filing comes as BitMEX announced it will shut down permanently on September 23, 2026.