Celsius Sues BitMEX for $481M Over 6,360 BTC Liquidations

Celsius Network’s bankruptcy estate has filed a lawsuit against BitMEX-linked companies seeking the recovery of roughly 6,360 Bitcoin tied to disputed liquidations during the March 2020 crypto market crash. The September 12 filing comes just 11 days before BitMEX is scheduled to permanently halt trading on September 23.

The dispute centers on two leveraged positions liquidated between March 12 and March 13, 2020. BitMEX closed Celsius’s Bitcoin futures position late on March 12, resulting in the loss of 1,325.8385 BTC. Celsius claims it had transferred an additional 350 BTC in margin at 23:47 UTC, with BitMEX acknowledging the transaction five minutes later but saying confirmation was still pending. The position was liquidated before confirmation arrived.

A second liquidation involved JST Alpha 1, a Cayman Islands fund backed by Celsius, at 02:50 UTC on March 13. That event resulted in another 5,034.3281 BTC being liquidated. JST transferred its related claims to Celsius in April 2025.

According to the complaint, the contract’s best offer price plunged from $4,502 to $3,422 within the same minute. Celsius alleges BitMEX intentionally structured its liquidation system in a way that caused customer collateral to be liquidated and claims the price movement could not be explained by normal trading activity. The allegations have not been tested in court, and BitMEX has not responded to them.

Blockchain Recovery Investment Consortium, a joint venture involving VanEck and GXD Labs, filed the case in the U.S. Bankruptcy Court for the Southern District of New York. The lawsuit names HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings and HDR Global Services and includes nine counts involving allegations of fraud, price manipulation and demands for the return of property.

At Bitcoin’s Wednesday price of about $75,702, the disputed 6,360 BTC is worth approximately $481 million. The recovery consortium previously secured a $299.5 million settlement with Tether in October.

BitMEX plans to force-close all remaining positions at 04:00 UTC on September 23 as part of its shutdown, which the exchange has attributed to a strategic review rather than insolvency, a security breach or regulatory action.