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 filed a lawsuit against BitMEX entities in New York on September 12, seeking recovery related to 6,360.1666 Bitcoin. The complaint charged the exchange operator with fraud, market manipulation, and improper liquidations during the March 2020 Bitcoin crash.
This legal action was initiated just as BitMEX prepared to conclude its exchange operations on September 23, introducing a fresh recovery claim against companies associated with a platform already in the process of an operational wind-down.
Celsius Complaint Targets BitMEX Liquidation System
Adversary case 26-01091 was logged on the Southern District of New York bankruptcy docket on September 12. Entities representing Celsius filed the lawsuit through the blocks.">Blockchain Recovery Investment Consortium (BRIC) targeting five companies linked to BitMEX.
The named defendants included HDR Global Trading Limited, ABS Global Trading Limited, 100x Holdings Limited, Shine Effort Inc. Limited, and HDR Global Services (Bermuda) Limited.
According to the complaint, BitMEX wrongfully seized digital assets and leveraged position when margin no longer covers losses.">liquidated positions during the market crash in March 2020. The estate estimated the disputed amount at 6,360.1666 BTC, which was valued at approximately $495 million when the filing was submitted.
These allegations are currently estate claims and have not yet been validated by the bankruptcy court. As proceedings move forward, the defendants retain the right to challenge jurisdiction, liability, damages, and other legal aspects.
Years prior to this official complaint, Celsius had already flagged BitMEX as a potential target for litigation. An October 2023 bankruptcy filing explicitly listed HDR Global Trading under prospective claims of fraud, negligence, and market manipulation.
This earlier disclosure indicates that the new lawsuit did not materialize solely because of BitMEX’s closure announcement. Instead, the lender maintained the prospective dispute throughout its Chapter 11 recovery proceedings.
Celsius Recovery Effort Extends Earlier Bankruptcy Strategy
Court documentation reveals that BRIC assumed its post-bankruptcy responsibilities in January 2024, acquiring the authority to handle illiquid assets and pursue specific recovery claims aimed at creditor distributions.
Since then, BRIC has advanced several legal actions involving the bankrupt lender’s past counterparties. An October court report noted that the estate successfully settled separate litigation with Tether for $299.5 million in 2025.
The BitMEX case builds upon this recovery strategy by addressing losses connected to derivatives trading, transforming a previously identified potential claim into an active adversary proceeding more than six years later.
Market data corroborates that the disputed timeframe aligned with one of the most severe selloffs in Bitcoin history. CoinMarketCap reported Bitcoin trading at $5,563.71 on March 13, 2020, marking a 38.92% drop over a seven-day period.
Even so, Celsius blamed its claimed losses on BitMEX’s actions rather than strictly pointing to market volatility. This distinction could prove pivotal in debates concerning causation, liquidation mechanics, and contract terms.
Furthermore, the March 2020 market crash put leveraged trading platforms across the entire crypto ecosystem under severe pressure, as swift price drops forced exchanges to execute liquidations while overall liquidity dried up across major trading pairs.
BitMEX Shutdown Moves Ahead Despite Lawsuit
On July 23, BitMEX announced plans to shut down its exchange on September 23 at 04:00 UTC. The board of HDR Global Trading attributed this choice to a strategic assessment of its business operations alongside the broader crypto industry.
The company clarified that the shutdown was not prompted by immediate regulatory pressure, hacks, or financial distress. BitMEX also halted new account registrations and advised users to withdraw assets and close out their positions.
The wind-down process accelerated through September, with the exchange setting early settlement for its remaining ETH as its native asset.">Ether and Bitcoin perpetual swaps and futures on September 16.
The filing from Celsius did not affect the predetermined shutdown schedule. BitMEX confirmed that users could still log into their accounts after trading ceased to withdraw any remaining balances.
This litigation followed another lawsuit that surfaced around the time BitMEX announced its closure. Law firm Burns Charest announced a New York action accusing the platform of fraudulent trading and liquidation practices.
That alternative case features distinct plaintiffs and legal arguments, bringing yet another historical dispute before a judicial body while the exchange concluded its final days of operation.
Legal Process Continues After Sept. 23 Shutdown
Rather than settling the underlying claims, the September 12 complaint merely initiates the adversary proceeding. The court will still need to process procedural motions, responses, and disagreements regarding legal sufficiency or jurisdiction.
Additionally, the defendants retain the option to dispute the calculation of claimed damages and the issue of causation. Any eventual financial recovery will rely on subsequent court rulings, negotiated settlements, or other official resolutions.
BitMEX’s exchange closure remains firmly set for September 23 at 04:00 UTC. Subject to upcoming court instructions, the lawsuit against the corporate defendants is expected to proceed even after trading services have officially ended.
FAQ
- How much is Celsius suing BitMEX for? Celsius is seeking $495 million tied to 6,360.1666 Bitcoin.
- When was the lawsuit filed? The adversary complaint was filed on September 12 in New York.
- Why is BitMEX shutting down? HDR Global Trading’s board cited a strategic review of the business and the wider crypto industry, noting it was not due to financial distress or hacks.
- Did the lawsuit stop the BitMEX shutdown? No, the legal filing did not alter BitMEX’s scheduled shutdown on September 23.
