Celsius Network's bankruptcy estate has sued BitMEX for roughly $495 million over the wrongful liquidation of 6,360 BTC during the March 2020 crash. The complaint landed 11 days before BitMEX's Sept. 23 shutdown, accusing the exchange of fraud and market manipulation.
Celsius Network's bankruptcy estate has sued BitMEX over a 2020 liquidation cascade it says cost the estate more than 6,360 BTC, traded on the derivatives exchange. The Bitcoin is worth roughly $495 million today, giving creditors a new recovery target just as the exchange prepares to close.
The Blockchain Recovery Investment Consortium, or BRIC, filed the complaint Sept. 12 in the US Bankruptcy Court for the Southern District of New York on behalf of Celsius entities, accusing entities behind BitMEX of fraud, market manipulation and wrongful liquidations during Bitcoin's March 2020 selloff.
Complaint targets BitMEX's liquidation engine
The case centers on how BitMEX handled leveraged positions as Bitcoin plunged during the March 12, 2020 panic. Celsius alleges the conduct resulted in wrongful liquidations and the seizure of assets belonging to Celsius and investment-fund group JST, with the losses stemming from fraudulent misconduct and market manipulation, according to the complaint.
Bitcoin fell from about $7,200 to a 10-month low near $5,678 within roughly 15 minutes at one stage that day, as the coronavirus pandemic triggered a broad rush out of risk assets. About $702 million of positions were liquidated on BitMEX during the initial crash, nearly all of them long positions.
The defendants include Seychelles-based HDR Global Trading Ltd., Hong Kong-based ABS Global Trading Ltd. and Shine Effort Inc. Ltd., and Bermuda entities 100x Holdings Ltd. and HDR Global Services Ltd., which collectively operated under the BitMEX name. The case marks the second major lawsuit against BitMEX since it announced its wind-down.
A years-old claim reaches court as BitMEX winds down
Celsius first flagged HDR Global Trading as a possible litigation target in a September 2023 bankruptcy filing. BRIC took over the claim in 2024, and by October 2025 Celsius had reached a $299.5 million settlement with Tether through separate litigation.
BitMEX stopped accepting new accounts and began limiting customers' ability to increase positions in late August, ahead of its Sept. 23 shutdown. It has since been settling and delisting contracts, including the early settlement of several BTC and ETH perpetual swaps and futures on Sept. 16. The company has said the closure was not prompted by financial distress, a hack or immediate regulatory pressure, and that customer assets exceed liabilities.
Simon Dixon, a Celsius creditor and longtime commentator on the bankruptcy, said the timing suggests BRIC may be considering more than a damages award that could take years to obtain. He said filing before a wind-down completes can help preserve claims against assets, entities and counterparties before corporate structures change, though he stressed there is no evidence Celsius has obtained an injunction blocking the closure.
Source: CryptoSlate
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