Celsius Sues BitMEX for $495 Million Just Days Before Exchange Shutdown

Celsius Network's bankruptcy estate has filed a lawsuit against BitMEX for $495 million in damages, just 11 days before the exchange is set to shut down. The complaint alleges that BitMEX's liquidation engine caused wrongful liquidations and seizures of digital assets during Bitcoin's historic March 2020 selloff.

The suit claims that BitMEX knew its representations about maintaining an orderly market for derivatives contracts were false, and instead intentionally designed the platform to cause liquidations and defraud customers. Celsius is seeking to recover losses tied to 6,360 BTC, worth approximately $495 million at the time of the filing.

The lawsuit targets HDR Global Trading Ltd., Hong Kong-based ABS Global Trading Ltd., Shine Effort Inc. Ltd., 100x Holdings Ltd., and HDR Global Services Ltd., which collectively operated under the BitMEX name. This marks the second major lawsuit against BitMEX since it announced its intention to wind down operations.