BitMEX trading giant briefly went offline a mere three days after it was hit with a major lawsuit. The downtime was blamed on a trading engine error.
The major Bitcoin derivatives went offline on May 19. However, it is now back online at the time of writing. The company tweeted around 12:45 UTC:
“The BitMEX Trading Engine is currently down.”
About 25 minutes after the initial announcement, Bitmex released an update. The update alleged:
“All funds are safe, delayed orders will be rejected, and no liquidations will occur during downtime.”
BitMEX went back live at around 13:30 UTC, at first in cancel only mode. That meant that no new orders could be placed at the time. BitMEX announced via its Telegram channel at around 13:40 UTC that trading was resumed.
Legal Problems In the United States
The outage happened shortly after BitMEX was served with a major lawsuit. That lawsuit was filed on May 16 by BMA LLC in the U.S District Court for the Northern District of California.
The plaintiff claims HDR Global Trading, BitMEX’s parent company, and the exchange’s top executives, Ben Delo, Arthur Hayes, and Samuel Reed, participated in or abetted many misdemeanours. Some of these misdemeanours include wire fraud, money laundering, racketeering, and operating an illegal money transmitting business.
Could these challenges have played a role in the downtime experienced in the exchange? Time will tell.