Celsius Sues BitMEX Over 6,360 Bitcoin Lost in 2020 Crash

Celsius Network’s bankruptcy estate has filed a lawsuit against five BitMEX entities, seeking the return of 6,360.1666 Bitcoin that were seized during forced liquidations in March 2020.

Background of the Liquidations

During the market crash in March 2020, BitMEX closed two leveraged Bitcoin futures positions held by Celsius. The first liquidation occurred on March 12, 2020, when BitMEX forced the closure of a Celsius position, taking 1,325.8385 BTC. Celsius had sent an additional 350 BTC as margin shortly before the closure, but BitMEX confirmed receipt only after the position had already been liquidated.

The second liquidation happened on March 13, 2020, affecting JST Alpha 1, a Cayman Islands fund in which Celsius had an investment. This liquidation resulted in a loss of 5,034.3281 BTC. JST assigned its claim to Celsius in April 2025.

Celsius’ Allegations

Celsius alleges that BitMEX’s platform and liquidation procedures were intentionally designed to cause collateral liquidations and defraud customers. The complaint claims that the rapid price drop in the contract – from $4,502 to $3,422 within a minute – cannot be explained by normal market activity.

Legal Proceedings

The lawsuit was filed on September 12 in the U.S. Bankruptcy Court for the Southern District of New York, just 11 days before BitMEX announced it would cease trading on September 23. The case names five BitMEX-related companies: HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings, and HDR Global Services.

The complaint includes nine counts covering fraud, price manipulation, and replevin (a demand for the return of the property). The Bitcoin in question is valued at roughly $481 million based on the Bitcoin price of $75,702 on the filing day.

BitMEX’s Position

BitMEX has not responded to the allegations. The exchange plans to close all remaining positions on September 23, citing a strategic review rather than insolvency, a hack, or regulatory action.

Related Recovery Efforts

The Blockchain Recovery Investment Consortium, appointed in 2024 to recover assets for Celsius creditors, previously secured a $299.5 million settlement from Tether in October 2023.