Celsius Sues BitMEX for $495M Over Alleged Liquidation Mishandling

Celsius Network's bankruptcy estate has filed a $495 million lawsuit against BitMEX, alleging that the exchange mishandled liquidations during the March 2020 Bitcoin crash.

The lawsuit claims that BitMEX manipulated its liquidation system and improperly took customer assets as the market plummeted. Celsius is seeking to recover losses tied to about 6,360 BTC, which fell from roughly $7,200 to $5,678 during the selloff.

BitMEX liquidated approximately $702 million in positions during the initial market plunge, raising concerns about CEX security and liquidation risk. The allegations have not been proven in court, and the lawsuit does not specify whether Celsius is seeking any other damages or compensation.