Arthur Hayes and BitMEX co-founders face class action fraud allegations over an alleged insider trading desk and server freezes as the exchange winds down.
Regulation & Gov ·
A proposed class action names Arthur Hayes, Samuel Reed, Benjamin Delo, and BitMEX itself as defendants in allegations of insider trading and fraud. The complaint centers on claims of an "Insider Trading Desk" operating within the exchange, alongside allegations that the platform deliberately froze servers at strategic moments.
The class action emerges as BitMEX winds down operations. The timing and nature of the server freezes—allegedly benefiting insiders while harming broader users—form a key pillar of the plaintiffs' theory that exchange leadership had access to material information before acting on it.
Key details remain unclear, including the specific dates and mechanics of the alleged insider trading desk, the scope of affected users, and the current procedural status of the litigation. Whether Hayes and co-founders have filed responses or settled discussions have begun is not yet reported.