Key Insights:
- Celsius sought $495 million over disputed 2020 Bitcoin liquidations.
- BitMEX faced fraud and market-manipulation allegations tied to 6,360 BTC.
- The lawsuit arrived 11 days before BitMEX’s scheduled shutdown.
Celsius Network’s bankruptcy estate sued BitMEX entities on Sept. 12 in New York, seeking recovery tied to 6,360.1666 Bitcoin. The complaint accused the exchange operator of fraud, market manipulation, and wrongful liquidations during Bitcoin’s March 2020 crash.
The filing arrived as BitMEX prepared to end exchange operations on Sept. 23. That timing placed a new recovery claim against entities involved with a platform already undergoing an operational wind-down.
Celsius Complaint Targets BitMEX Liquidation System
The Southern District of New York bankruptcy docket recorded adversary case 26-01091 on Sept. 12. Celsius entities brought the action through Blockchain Recovery Investment Consortium, or BRIC, against five BitMEX-linked companies.
The defendants included HDR Global Trading Limited, ABS Global Trading Limited, and 100x Holdings Limited. Shine Effort Inc. Limited and HDR Global Services (Bermuda) Limited were also named.
The complaint alleged BitMEX wrongfully liquidated positions and seized digital assets during the March 2020 market crash. The estate valued the disputed amount at 6,360.1666 BTC, worth about $495 million at the time of filing.
The allegations remain claims from the estate and have not been established by the bankruptcy court. The defendants can challenge liability, jurisdiction, damages, and other legal elements as proceedings continue.
Celsius had identified BitMEX as a potential litigation target years before filing this complaint. An October 2023 bankruptcy document listed HDR Global Trading under possible negligence, fraud, and market manipulation claims.
That earlier disclosure shows the latest case did not emerge solely from BitMEX’s closure announcement. The lender had preserved the potential dispute during its Chapter 11 recovery process.
Celsius Recovery Effort Extends Earlier Bankruptcy Strategy
Court records show BRIC received its post-bankruptcy role in January 2024. The consortium gained authority to administer illiquid assets and pursue designated recovery claims for creditor distributions.
BRIC has since pursued multiple actions connected with the failed lender’s former counterparties. The estate settled separate litigation with Tether for $299.5 million in 2025, an October court report showed.
The BitMEX case extends that recovery strategy into losses linked to derivatives trading. It also converts a previously identified potential claim into an active adversary proceeding more than six years later.
Market data confirms the disputed period coincided with one of Bitcoin’s sharpest historical selloffs. CoinMarketCap recorded Bitcoin at $5,563.71 on March 13, 2020, down 38.92% over seven days.
Celsius, however, attributed its claimed losses to BitMEX’s conduct rather than market volatility alone. That distinction could shape arguments over causation, contract terms, and liquidation mechanics.
The March 2020 crash also tested leveraged trading venues across the crypto market. Rapid price declines forced exchanges to process liquidations while liquidity thinned across major trading pairs.
BitMEX Shutdown Moves Ahead Despite Lawsuit
BitMEX announced on July 23 that its exchange would close Sept. 23 at 04:00 UTC. HDR Global Trading’s board cited a strategic review of its business and the broader crypto industry.
The company said the decision did not result from financial distress, hacks or immediate regulatory pressure. BitMEX also stopped new registrations and urged customers to close positions and withdraw assets.
Its wind-down accelerated during September. The exchange scheduled remaining Bitcoin and Ether perpetual swaps and futures for early settlement on Sept. 16.
The Celsius filing did not alter the announced shutdown timetable. BitMEX said users could still access accounts after trading stopped and withdraw remaining balances.
The litigation also followed another lawsuit filed around the time of BitMEX’s closure announcement. Law firm Burns Charest said it filed a New York action alleging fraudulent trading and liquidation practices.
That separate case involves different plaintiffs and legal claims. It placed another historical dispute before a court during the exchange’s final operating period.
Legal Process Continues After Sept. 23 Shutdown
The Sept. 12 complaint starts the adversary proceeding rather than resolving the claims. The court can address responses, procedural motions, and disputes over jurisdiction or legal sufficiency.
The defendants could also contest causation and the calculation of alleged damages. Any recovery would depend on later rulings, settlement negotiations, or another court-approved resolution.
BitMEX’s exchange closure remains scheduled for Sept. 23 at 04:00 UTC. The lawsuit may continue against the named corporate defendants after trading services cease, subject to subsequent court orders.
