A wave of lawsuits accuse BitMEX of fraudulently engineering customer liquidations to seize Bitcoin collateral, alleging an internal trading desk with privileged access manipulated liquidations during server freezes and high-volatility periods. Plaintiffs say the platform allowed up to 100x leverage while liquidating before all collateral was exhausted, with remaining Bitcoin allegedly diverted into the insurance fund to profit from forced liquidations. They claim the internal desk could access non-public order-book data and continued trading when ordinary users were blocked, contributing to widespread losses totaling hundreds of BTC for customers dating back to 2018. BitMEX has not admitted wrongdoing, and the company is winding down operations, shutting down in September while facing multiple lawsuits and ongoing scrutiny of its liquidation engine. The lawsuits seek return of the Bitcoin allegedly withheld and compensatory and punitive damages, echoing earlier litigation that was dismissed without prejudice. BitMEX-relevant commentary has stressed that formal judgments will determine the validity of these allegations as the exchange reduces its operations and delists markets.