Celsius has filed a lawsuit against BitMEX for the illegal liquidation of 6,360 BTC, claiming damages of approximately $486 million.
The Celsius network, currently undergoing bankruptcy proceedings, has initiated legal action against five entities linked to BitMEX, claiming damages for the liquidation of 6,360.16 BTC, worth around $486 million.
The defendants include HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings, and HDR Global Services. Celsius asserts that BitMEX executed illegal liquidations of its positions amid the market downturn in March 2020.
According to the lawsuit, on March 12, 2020, BitMEX forcibly liquidated a Celsius position backed by 1,325.84 BTC, followed by the liquidation of the JST fund's position, which involved 5,034.33 BTC on March 13. This latter amount was subsequently added to Celsius's bankruptcy estate.
The claim contends that BitMEX manipulated the liquidation prices and the process itself, alleging that some liquidations occurred over 24% below the best available offer on the exchange. Celsius also noted a service disruption at BitMEX on March 13, after which liquidations ceased and Bitcoin prices began to recover, alongside reports of two DDoS attacks on the platform.
Celsius is seeking not only the liquidation amounts but also punitive damages and reimbursement for legal expenses from the defendants. This lawsuit comes shortly before BitMEX announced a suspension of its services, with plans to cease operations and stop onboarding new users by the summer of 2026.
In a related incident, BKX Services and David Namdar previously accused BitMEX of manipulating and misappropriating 622.66 BTC in July.
