CryptoSlate
Celsius Network's bankruptcy estate has sued BitMEX for $495 million, accusing the derivatives exchange of fraud, market manipulation and wrongful liquidations during Bitcoin's March 2020 crash. The complaint, filed Sept. 12 in the US Bankruptcy Court for the Southern District of New York, seeks to recover losses tied to 6,360 BTC the estate says it lost when BitMEX's liquidation engine closed leveraged positions during the selloff.
Blockchain Recovery Investment Consortium (BRIC), Celsius' litigation administrator, brought the case against Seychelles-based HDR Global Trading, Hong Kong-based ABS Global Trading and other entities that operated under the BitMEX name. The estate alleges BitMEX intentionally designed its platform and liquidation procedures to trigger collateral liquidations rather than maintain an orderly market, as it had represented to customers.
Why it matters
The case turns a claim Celsius first identified in its 2023 bankruptcy filings into an active recovery effort, and it lands at a delicate moment: BitMEX shuts down its exchange on Sept. 23. Filing before the wind-down completes can help preserve claims against assets and corporate structures before they change. It is also the second major lawsuit against BitMEX since it announced its closure in July.
BRIC has a track record here. In October 2025 the estate extracted a $299.5 million settlement from Tether through similar litigation. The BitMEX complaint adds another potentially large claim to that creditor-recovery campaign.
Market impact
The central legal battle will be whether Celsius' losses flowed from actionable misconduct or from the extreme volatility and contract mechanics traders accepted when opening leveraged positions. On March 12, 2020, BTC fell from about $7,200 to a low near $5,678 within roughly 15 minutes, and around $702 million of positions, nearly all longs, were liquidated on BitMEX during the initial crash.
The complaint leaves BitMEX's closure schedule intact, and the defendants remain liable after trading stops.
Frequently asked questions
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How much is Celsius seeking from BitMEX and in what asset?
Celsius' bankruptcy estate is seeking roughly $495 million in damages tied to 6,360 BTC it says it lost through wrongful liquidations during the March 2020 market crash.
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Why did Celsius file the lawsuit 11 days before BitMEX shuts down?
Filing before the Sept. 23 shutdown can help preserve claims against BitMEX's assets, entities and corporate structures before holdings change during the wind-down. The defendants remain liable after trading stops.
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What does Celsius allege BitMEX did wrong during the 2020 crash?
The complaint alleges BitMEX intentionally designed its platform and liquidation procedures to trigger collateral liquidations and defraud customers, despite representing that it would maintain an orderly market.
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Who is pursuing the case on behalf of Celsius creditors?
Blockchain Recovery Investment Consortium (BRIC), appointed in 2024 as Celsius' litigation administrator and complex asset recovery manager, brought the case. It previously secured a $299.5 million settlement from Tether in October 2025.
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Will the lawsuit stop BitMEX from shutting down on Sept. 23?
No. The complaint leaves BitMEX's closure schedule intact, and no injunction has been obtained. Any move to block the closure or restrict asset transfers would require separate legal action or court approval.
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