Celsius Bankruptcy Estate Sues BitMEX for $495 Million Over 2020 Bitcoin Liquidations

TLDR

• Celsius Network’s bankruptcy estate sued BitMEX on Sept. 12 over forced liquidations during the March 2020 COVID crash
• The estate is seeking the return of 6,360.17 BTC worth roughly $495 million
• BitMEX allegedly controlled both the liquidation mechanism and the insurance fund that benefited from those liquidations
• This is the second lawsuit filed against BitMEX since it announced its closure in July; trading ends Sept. 23
• The allegations remain unproven and will be tested through the U.S. court process

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Celsius Network’s bankruptcy estate has filed a lawsuit against BitMEX, seeking the return of 6,360.17 Bitcoin worth around $495 million. The suit centers on forced liquidations that took place during the March 2020 COVID market crash.

Celsius Sues BitMEX 11 Days Before Exchange Shutdown, Seeking $495 Million

Celsius’ bankruptcy estate sued entities linked to BitMEX in the U.S. Bankruptcy Court for the Southern District of New York on Sept. 12. The complaint alleges fraud, market manipulation and wrongful… pic.twitter.com/NeXYwJGjN9

— Wu Blockchain (@WuBlockchain) September 16, 2026

The complaint was filed on Sept. 12 in the U.S. Bankruptcy Court for the Southern District of New York. It was brought by the Blockchain Recovery Investment Consortium, which serves as the litigation administrator in the Celsius bankruptcy case.

Five BitMEX-linked companies are named as defendants: HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings, and HDR Global Services. These entities operate across Bermuda, the Cayman Islands, England, Hong Kong, the Seychelles, and the United States.

How the Bitcoin Was Lost

Celsius lost 1,325.84 BTC when BitMEX liquidated its position on March 12, 2020. Investment fund JST lost another 5,034.33 BTC the following day and later assigned its claims to the Celsius estate.

Both positions were structured to profit if Bitcoin held its value or rose. Instead, Bitcoin dropped sharply as global markets reacted to the spread of COVID-19.

The estate alleges BitMEX did more than close the positions to cover losses. It claims the exchange held onto Bitcoin collateral that should have been returned to customers.

At a valuation of roughly $77,800 per Bitcoin, the combined 6,360.17 BTC is worth close to $495 million. The estate is pursuing the Bitcoin itself, not just its dollar value at the time of the crash.

BitMEX Accused of Controlling Both Sides of Liquidations

At the center of the case is BitMEX’s alleged control over the liquidation process. The complaint says BitMEX also controlled the insurance fund that received assets from those liquidations, giving the exchange a financial interest in how the process worked.

“BitMEX intentionally designed its platform and liquidation procedures to cause liquidations of collateral and defraud its own customers,” the filing states.

This is the second lawsuit targeting BitMEX’s liquidation practices since the exchange announced it would shut down in July. A separate proposed class action filed by BKX Services and trader David Namdar made similar claims, alleging BitMEX retained 622.66 BTC that should have gone back to customers.

BitMEX has faced prior legal trouble. In January 2025, a federal judge ordered HDR Global Trading to pay a $100 million criminal fine for Bank Secrecy Act violations. Co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed pleaded guilty in 2022 but were later pardoned by President Donald Trump in 2025.

BitMEX stops trading on Sept. 23. The Celsius lawsuit remains at the complaint stage, and no liability has been established.