Celsius sues BitMEX for $495 million ahead of exchange shutdown

Celsius Network’s bankruptcy estate filed a lawsuit against the operators of the BitMEX derivatives exchange, seeking roughly $495 million in damages tied to the loss of more than 6,360 BTC during the March 2020 market crash.

Complaint details

The complaint, lodged on September 12 in the US Bankruptcy Court for the Southern District of New York, alleges fraud, market manipulation and wrongful liquidations by entities that operated under the BitMEX name. The defendants include HDR Global Trading Ltd., ABS Global Trading Ltd., Shine Effort Inc. Ltd., 100x Holdings Ltd. and HDR Global Services Ltd.

Background of the 2020 liquidation cascade

On March 12, 2020, Bitcoin’s price fell from about $7,200 to a 10‑month low near $5,678 in roughly 15 minutes, triggering approximately $702 million of liquidations on BitMEX, primarily long positions. Celsius alleges that BitMEX’s liquidation engine was intentionally designed to cause collateral liquidations and defraud customers, rather than maintain an orderly market.

Timing with BitMEX wind‑down

BitMEX announced in July that it would cease operations on September 23, 2026, after a strategic review. The lawsuit was filed just 11 days before the scheduled shutdown, giving Celsius a new recovery target while the exchange is winding down.

Litigation administration

Blockchain Recovery Investment Consortium (BRIC) is pursuing the claim on behalf of Celsius’s estate, having been appointed in 2024 as the litigation administrator and complex‑asset recovery manager. BRIC has previously secured a $299.5 million settlement with Tether in October 2025.

Potential implications

The case could proceed against the named entities even after BitMEX stops trading, depending on how the court addresses jurisdiction, limitation periods and the legal sufficiency of the claims. Observers note that filing before a wind‑down may help preserve claims against assets that could otherwise be restructured.