Celsius estate sues BitMEX for $495 million in Bitcoin liquidations

Celsius Network’s bankruptcy estate has filed a lawsuit in the U.S. Bankruptcy Court for the Southern District of New York seeking the return of 6,360.17 BTC, valued at roughly $495 million, alleging that BitMEX’s liquidation system caused forced liquidations during the March 2020 market crash.

Background of the claim

The complaint, filed on September 12, states that Celsius lost 1,325.84 BTC on March 12, 2020, and the investment fund JST lost an additional 5,034.33 BTC the following day. JST later assigned its claim to the Celsius estate. Both positions were intended to generate returns if Bitcoin held its value or rose, but the rapid price decline triggered margin calls and forced closures.

Allegations against BitMEX

Celsius alleges that BitMEX designed its platform and liquidation procedures to profit from liquidated customer collateral. The lawsuit claims BitMEX controlled both the liquidation trigger mechanism and the insurance fund that received assets from liquidations, creating a conflict of interest. Specific accusations include fraudulent transfer, conversion, breach of contract, breach of the implied duty of good faith and fair dealing, and unjust enrichment.

Defendants and jurisdiction

Five BitMEX‑linked entities are named as defendants: HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings, and HDR Global Services. These entities operate across multiple jurisdictions, including Bermuda, the Cayman Islands, England, Hong Kong, the Seychelles, and the United States.

Relation to other BitMEX litigation

The Celsius complaint follows a proposed class action filed in July that also alleges BitMEX retained Bitcoin collateral after forced liquidations. Both cases focus on the exchange’s handling of customer assets during periods of extreme market volatility.

Potential impact

The litigation administrator, Blockchain Recovery Investment Consortium, is pursuing the Bitcoin itself rather than a cash equivalent. Any recovery will depend on the court’s findings and the form of relief granted. The lawsuit is separate from BitMEX’s own legal challenges, including a 2025 criminal fine related to anti‑money‑laundering violations and the exchange’s announced closure of trading on September 23.