Celsius Sues BitMEX for $495 Million Over 2020 Bitcoin Crash

Celsius' bankruptcy estate sues BitMEX-linked entities for $495 million, alleging fraud, market manipulation and wrongful liquidations. Celsius' bankruptcy estate has sued entities linked to BitMEX, seeking approximately $495 million over allegations tied to Bitcoin trading during the cryptocurrency's March 2020 market crash. The complaint was filed by Blockchain Recovery Investment Consortium (BRIC) on behalf of Celsius in the U.S. Bankruptcy Court for the Southern District of New York on Sept. 12, according to Wu Blockchain. Celsius Estate Targets 6,360 BTC The lawsuit centers on 6,360 BTC that Celsius alleges were affected by conduct involving BitMEX during the sharp market downturn in March 2020. The Bitcoin was valued at approximately $495 million at the time the complaint was filed. Celsius' bankruptcy estate alleges fraud, market manipulation and wrongful liquidations in connection with the events. The claims remain allegations and have not been established by the court. The filing represents an effort by the bankruptcy estate to pursue the recovery of assets associated with Celsius' creditors. BRIC brought the case as the entity representing Celsius in the litigation. Lawsuit Comes Before BitMEX Trading Shutdown The timing of the lawsuit is notable because BitMEX is scheduled to stop trading on Sept. 23, just 11 days after the complaint was filed. The exchange's planned trading shutdown provides a specific near-term date for the BitMEX platform referenced in the case. The lawsuit itself, however, concerns events dating back to the March 2020 Bitcoin crash rather than the scheduled shutdown. The complaint names entities linked to BitMEX and seeks damages associated with the alleged conduct involving the 6,360 BTC. Allegations Remain Unresolved The case is now before the U.S. Bankruptcy Court for the Southern District of New York, where the allegations will be subject to the judicial process. Celsius entered bankruptcy proceedings after facing severe financial pressure during the 2022 cryptocurrency market downturn. The current lawsuit is focused on a separate set of events from March 2020 and seeks to recover value for the bankruptcy estate. For now, the allegations against BitMEX-linked entities remain claims made in the complaint. No court finding has established that fraud, market manipulation or wrongful liquidations occurred as alleged. BitMEX's scheduled trading shutdown on Sept. 23 is the next specific date identified in connection with the exchange. Technology & Blockchain Writer Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy. She prioritises clarity and accuracy when explaining technical developments to a general audience.