Bitcoin
Celsius Estate Sues BitMEX Entities for $490 Million Over 2020 Liquidations
Representatives for the bankrupt lender allege the exchange operator manipulated liquidations of 6,360 Bitcoin during the March 2020 market downturn.
The Celsius bankruptcy estate has filed a lawsuit against five BitMEX-affiliated companies in the US Bankruptcy Court for the Southern District of New York. Filed on September 12 by the Blockchain Recovery Investment Consortium on behalf of Celsius, the complaint accuses HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings, and HDR Global Services of fraud, market manipulation, and unlawful position liquidations during the market crash of March 2020.
The legal action targets the seizure of 1,325.84 Bitcoin from Celsius on March 12, 2020, alongside 5,034.33 Bitcoin taken from investment firm JST the next day, whose claims were later assigned to Celsius. In total, the estate seeks to recover 6,360 Bitcoin, valued at nearly $490 million, just ahead of BitMEX's planned closure of exchange operations on September 23.
According to the complaint, BitMEX exercised full control over its liquidation trigger prices, matching engine, and insurance fund. The filing asserts that liquidation orders were entered at prices more than 24% under the best available ask, driving Bitcoin on BitMEX below rates on rival venues. The estate further points to a platform outage on March 13, 2020, arguing that Bitcoin rebounded once forced sales ceased. BitMEX had previously attributed that downtime to two distributed denial-of-service attacks that occurred at 02:16 UTC and 12:56 UTC.
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