Celsius Sues BitMEX for $490 Million Over Alleged Market Manipulation

The Celsius bankruptcy estate has filed a lawsuit against BitMEX in the U.S. Bankruptcy Court for the Southern District of New York, accusing several companies tied to the exchange of fraud and market manipulation.

The complaint alleges that during the March 2020 crypto crash, BitMEX liquidated Celsius positions and seized Bitcoin collateral. The estate claims that BitMEX's liquidation engine controlled trigger prices, executed orders, and received proceeds into an insurance fund.

The lawsuit seeks to recover approximately $490 million in Bitcoin, along with various forms of damages and fees. It also alleges that BitMEX's liquidation mechanics worsened the crash by suppressing market prices.

BitMEX experienced distributed denial-of-service (DDoS) attacks on March 13, which the estate claims contributed to downward price pressure. The court filing argues that this timing is evidence of BitMEX's forced-selling activity having suppressed the market price.