Celsius Sues BitMEX Entities for $495 Million in Lost Bitcoin

The Celsius bankruptcy estate has filed a lawsuit against several entities linked to BitMEX, seeking recovery of approximately $495 million in Bitcoin (BTC) lost during liquidations in March 2020. The complaint alleges that BitMEX intentionally designed its platform and liquidation procedures to cause liquidations of collateral and defraud its own customers.

The Celsius estate claims it lost 1,325.84 BTC when BitMEX liquidated one of its trades on March 12, 2020, and also pursues claims assigned by investment fund JST alleging another 5,034.33 BTC loss the following day. The lawsuit arrives as BitMEX prepares to end exchange operations on September 23.

The dispute centers around how BitMEX's liquidation system operated during the crash, with Celsius accusing the exchange of taking control of Bitcoin collateral that should have been returned. BitMEX has stated that customer assets exceed its liabilities and that withdrawals will remain available after trading ends.