BitMEX engaged in fraudulent liquidation practices and asset seizure, artificially triggering losses for customers to retain their collateral
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"BitMEX customers are seeking the return of 622.66 Bitcoin in a proposed class action that accuses the exchange of engineering liquidations and retaining traders' collateral. The plaintiffs allege BitMEX's liquidation engine closed positions when unrealized losses reached about half of the collateral traders had posted, but BitMEX seized the remainder and transferred it to its Insurance Fund instead of returning it."
"The complaint further alleges that an undisclosed internal trading desk could see customer positions, hidden orders and liquidation points. It claims the desk used anonymized accounts and could continue trading during server freezes that locked ordinary customers out, while also trading on reference exchanges to induce price moves that triggered liquidations."