Celsius Sues BitMEX for Alleged $495M Market Manipulation
Celsius Network and its affiliates have filed a lawsuit against BitMEX for alleged fraudulent conduct, wrongful liquidation, and seizure of approximately 6,360 BTC (valued at $495 million) in US Bankruptcy Court for the Southern District of New York.
The complaint alleges that BitMEX manipulated Celsius's trading and liquidation mechanisms during the March 12-13, 2020 market crash. According to Celsius, BitMEX had control over margin requirements, prices used to trigger liquidations, and the liquidation engine that sold customer positions.
Celsius claims that aggressive sell orders, including sell walls and orders more than 24% below the next-best ask, contributed to a liquidation cascade that further pushed down the market. The exchange's reported DDoS disruption coincided with a halt in liquidations and a rapid price recovery, according to Celsius.
The company is seeking recovery of the seized Bitcoin and additional damages. The lawsuit comes just 11 days before BitMEX shut down permanently.