The crypto derivatives exchange went offline for about 45 minutes on May 19th. The exchange wrote on twitter that they are “working to bring it back online as soon as possible.” Now BitMEX has promised that they would investigate the matter on full and funds of all users are safe. The exchange is currently operational, but the brief outage saw it become inaccessible to users, with the BitMEX’s team announcing that a full post mortem will follow in unearthing the main reason for the error.
BitMEX assures users that all funds are safe.
This is not the first time that BitMEX has gone offline abruptly, the exchange went offline in mid-March when bitcoin’s price plunged to historic lows. The company followed up the initial announcement of the halt with an update to allay any fears regarding the safety of users’ funds. Apart from reassuring platform users that “all funds are safe,” the exchange also noted that any delayed orders would be rejected. The exchange informed that it wasn’t allowing any liquidation on the platform during the downtime.
UPDATE: We’re working to bring the BitMEX platform back online as soon as possible.
All funds are safe, delayed orders will be rejected, and no liquidations will occur during downtime. There will be a cancel only period on coming back online.
— BitMEX (@BitMEXdotcom) May 19, 2020
BitMEX faces another lawsuit.
Bitmex’s alleged trading engine error happened just days after a lawsuit was filed in a US district court against the exchange and its executive employees. The lawsuit also accuses the defendants of committing wire fraud, money laundering, and market manipulation. BMA LLC filed the lawsuit against the crypto exchange. BitMEX operator HDR Global and exchange’s top executives Arthur Hayes, Ben Delo, and Samuel Reed were named as defendants in the lawsuit. The plaintiffs accused the exchange and its operator of conspiring to conduct the business through a “pattern of racketeering activity” and engaging in market manipulation, fraudulent business dealings, wire frauds, and many other illicit schemes.
According to the lawsuit, BitMEX enables manipulators to operate illegally by allowing them to open an unlimited number of anonymous and unverified accounts, without trading or withdrawal limits.