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The Celsius Network bankruptcy estate has sued five BitMEX-linked companies over 6,360.1666 Bitcoin, valued at about $495 million when the complaint was filed, that it alleges were wrongfully taken through liquidations during the March 2020 market crash.
Two Liquidations Account for 6,360 Bitcoin
The first disputed liquidation occurred on March 12, 2020, when BitMEX closed a Celsius Bitcoin futures position. The complaint says Celsius lost 1,325.8385 BTC after transferring another 350 BTC of margin shortly before liquidation.
The second involved JST Alpha 1, an investment fund that allegedly lost 5,034.3281 BTC in a BitMEX liquidation on March 13. JST assigned its related claims to Celsius in April 2025, and the estate is now pursuing those claims alongside its own.
Celsius Challenges BitMEX Liquidation System
The complaint accuses BitMEX-linked entities of fraud, market manipulation, breach of contract and unjust enrichment. Celsius alleges BitMEX controlled both the mechanism determining when customer positions were liquidated and an insurance fund that could benefit from certain liquidation outcomes. The estate said:
“Instead of maintaining an orderly market, BitMEX intentionally designed its platform and liquidation procedures to cause liquidations of collateral and defraud its own customers.”
BitMEX has historically said its liquidation engine is designed to manage positions after traders fall below maintenance-margin requirements, with liquidation gains or losses allocated through its insurance-fund structure. Celsius’s allegations have not been adjudicated.
Estate Seeks Bitcoin or Its Value
Celsius is seeking return of the disputed Bitcoin or its value, plus additional monetary relief and profits it alleges the defendants obtained through the challenged conduct. The roughly $495 million figure reflects the estimated value of 6,360.1666 BTC around the filing date rather than the assets’ value when they were liquidated in 2020.
The defendants include HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings and HDR Global Services. Celsius alleges the entities operated collectively under the BitMEX name.
Filing Precedes BitMEX’s Planned Shutdown
The complaint was filed ahead of BitMEX’s planned Sept. 23 shutdown. The exchange said in July that trading operations will close at 04:00 UTC following a strategic review.
BitMEX said the closure was not caused by financial distress, a hack or immediate regulatory pressure. The timing of the Celsius case does not establish any connection between the lawsuit and BitMEX’s decision to wind down operations.
