Celsius Sues BitMEX for $495 Million Over 2020 Liquidation Cascade
Celsius Network's bankruptcy estate has filed a lawsuit against BitMEX for $495 million over a 2020 liquidation cascade that cost more than 6,360 Bitcoin.
The complaint, filed on September 12 in the US Bankruptcy Court for the Southern District of New York, accuses entities behind the crypto derivatives exchange of fraud, market manipulation and wrongful liquidations during Bitcoin's historic March 2020 selloff.
Celsius is seeking to recover losses tied to 6,360 BTC, worth roughly $495 million around the time of the filing. The defendants include Seychelles-based HDR Global Trading Ltd., Hong Kong-based ABS Global Trading Ltd. and Shine Effort Inc. Ltd., along with Bermuda entities 100x Holdings Ltd. and HDR Global Services Ltd.
The lawsuit targets BitMEX's liquidation engine, which Celsius alleges was designed to cause liquidations of collateral and defraud its own customers during the market panic. Bitcoin fell sharply that day as the emerging coronavirus pandemic triggered a broad rush out of risk assets.