Regulations

Story: BitMEX’s $270M Insurance Fund Has No Clear Owner as September Closure Nears

By Evie Vavasseur

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The November Rebalancing Nobody Explained. The fund's history gets murkier when you look at what happened on November 18, 2025.

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Class-Action Lawsuit Filed by BKX Services and David Namdar. Two plaintiffs — BKX Services and David Namdar — filed a proposed class-action lawsuit against…

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What Closure Means for Former Traders. The September 23 deadline is the problem. As that date gets closer, affected users have fewer…

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BitMEX is shutting down in September. And a $270 million insurance fund sitting on its books has no disclosed destination.

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The fund holds $239 million in Bitcoin and $31 million in USDT. BitMEX built it over the years through a pretty specific mechanism — when traders got liquidated during market…

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The fund's history gets murkier when you look at what happened on November 18, 2025. Before that date, the fund held 36,400 BTC.

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At prices around the time of the rebalancing, that removed BTC probably represented well over a billion dollars.

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Social media hasn't been kind to BitMEX over this. Speculation about misappropriation spread fast, with some users pointing fingers directly at the platform's founders, including…

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There's more. The lawsuit also raises allegations about an in-house trading desk at BitMEX that allegedly had special access to customer data.

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Read also: BitMEX Shuts Down September 23 as HDR Global Exits Crypto Derivatives

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But here's the hard part for the plaintiffs: past lawsuits against BitMEX have been dismissed. Not settled. Dismissed. That history makes the current case harder to read.

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The insurance fund itself was never traditional insurance. It didn't work like a guarantee scheme where customers could file claims.

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BitMEX's approach to risk management was genuinely unusual in the industry when it launched.

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More context: Bitget Brings MiniMax Stock Exposure to USDT Traders Via Quanto Futures

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And the $270 million is still sitting there. No distribution plan. No announcement about returning funds to users. No charity pledge. No burn mechanism.

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