Celsius Estate Sues BitMEX Over 6,360 BTC Before Exchange Shutdown
Celsius Network’s bankruptcy estate has sued BitMEX over 6,360 BTC tied to liquidations during the March 2020 crypto crash. The estate filed the case on September 12 in U.S. Bankruptcy Court for the Southern District of New York, seeking about $495 million based on the disputed Bitcoin holdings.
The claims c over two liquidations. Celsius says BitMEX liquidated 1,325.84 BTC from its position on March 12, 2020. The estate also pursues claims assigned by investment fund JST, which it says lost another 5,034.33 BTC the following day. Celsius alleges BitMEX improperly operated its liquidation system and benefited from forced sales through its insurance fund. Those allegations have not been established in court, and BitMEX had not responded publicly as of the latest reports.
The lawsuit arrives 11 days before BitMEX plans to stop exchange operations on September 23. BitMEX says its shutdown follows a strategic review and does not result from financial distress, hacking, or immediate regulatory pressure.
Why it matters
The case could affect recoveries for Celsius creditors while BitMEX winds down its trading operations. It also puts renewed focus on liquidation practices during extreme crypto-market stress.
