Celsius Sues BitMEX Over Alleged $100 Million Trade Mismanagement

Celsius Network's debtors have filed a lawsuit against BitMEX over trades that Celsius CEO Alex Mashinsky previously claimed never happened.

The suit alleges wrongful liquidation and seizure by BitMEX of Celsius' BTC on March 12, 2020, during the COVID market crash. At the time, Mashinsky assured his YouTube audience that Celsius wasn't trading at all, stating 'Fortunately, Celsius is not a trader.'

However, according to the debtors, Celsius did have a leveraged long position in XBTM20 on BitMEX, which was liquidated by BitMEX as part of what the debtors call a 'fraudulent scheme to defraud its own customers.'

The loss, estimated at over $100 million, is attributed to BitMEX's 'wrongful liquidation' rather than Celsius' trading activities.