Celsius Estate Sues BitMEX for $495 Million Over 2020 Covid Crash Liquidations

The bankruptcy estate of Celsius Network has sued BitMEX, seeking $495 million over Bitcoin liquidations the failed lender suffered during the March 2020 Covid market crash. The suit was filed September 12 in the U.S. Bankruptcy Court for the Southern District of New York by the Blockchain Recovery Investment Consortium, the litigation administrator overseeing Celsius's estate, according to CoinDesk's reporting on the filing.

The complaint names five BitMEX entities, HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings and HDR Global Services, incorporated across Bermuda, the Cayman Islands, England, Hong Kong, Seychelles and the US. It covers two liquidations: 1,325.84 BTC that Celsius itself lost on March 12, 2020, and a separate claim tied to investment fund JST, which lost 5,034.33 BTC on the exchange the following day. Combined, the estate values the two liquidations at 6,360 BTC, or roughly $495 million at current prices.

The filing accuses BitMEX of designing its platform to profit from the same liquidations it triggered, alleging the exchange controlled both the liquidation engine and the insurance fund that benefited when positions were force-closed. "BitMEX intentionally designed its platform and liquidation procedures to cause liquidations of collateral and defraud its own customers," the complaint states, according to CoinDesk. Celsius argues its positions, and JST's, were structured as delta-neutral hedges meant to profit regardless of which way Bitcoin's price moved, and that BitMEX's conduct during the crash undermined that structure rather than reflecting ordinary market risk.

The timing lands 11 days before BitMEX is due to stop trading entirely on September 23, part of a wind-down the exchange announced in July that it has attributed to a strategic review rather than financial distress, hacking or regulatory pressure. It is the second lawsuit filed against BitMEX since that announcement. Celsius first flagged HDR Global Trading, BitMEX's operating entity, as a possible litigation target in a September 2023 bankruptcy filing, and the claim later passed to the Blockchain Recovery Investment Consortium after its 2024 appointment. BitMEX did not respond to requests for comment on the lawsuit.

The case adds to a wave of Covid-crash-era disputes surfacing years later as bankrupt platforms' estates work through claims against counterparties before those counterparties wind down or restructure. Celsius creditor Simon Dixon told CryptoSlate the timing may reflect an effort to preserve claims against BitMEX's assets and entities before its corporate structure changes further, though he noted no injunction or asset freeze has been reported.