Celsius Sues BitMEX Over Alleged COVID-19 Pandemic Manipulation
The Blockchain Recovery Investment Consortium has filed a lawsuit against BitMEX on behalf of Celsius Network's bankruptcy estate, alleging that the exchange engaged in fraudulent and market manipulation activities during the COVID-19 pandemic. The complaint was submitted to the US Bankruptcy Court for the Southern District of New York on September 12.
The lawsuit claims that BitMEX's forced liquidation of accounts in March 2020 resulted in Celsius Network losing 1,325.84 BTC ($75,407.00 · Live), with further losses due to investments in the JST fund. The complaint alleges that BitMEX controlled both the systems for determining when clients would be cleared and an insurance fund that profited from these liquidations.
The consortium is seeking $4.95 billion in damages, based on 6,360 BTC currently valued at approximately $75,407.00 · Live. The defendants include HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings, and HDR Global Services, with registered addresses spanning Bermuda, the Cayman Islands, the UK, Hong Kong, Seychelles, and the US.