The Celsius bankruptcy estate has sued BitMEX over the alleged wrongful liquidation of 6,360 BTC during the March 2020 market crash. The cryptocurrency now carries a value of roughly $495 million. The complaint was filed Sept. 12 in the U.S. Bankruptcy Court for the Southern District of New York.
The case arrives just days before BitMEX plans to end exchange operations. BitMEX has set Sept. 23, 2026, as its closure date after a strategic review. The exchange says the decision did not result from financial distress, hacking, or immediate regulatory pressure.
The Celsius estate is pursuing the claim through Blockchain Recovery Investment Consortium, its litigation administrator. The lawsuit names five BitMEX-related companies across several jurisdictions.
March 2020 Liquidations at the Center of the Dispute
The complaint focuses on Bitcoin’s sharp decline during the March 12 and 13, 2020 market turmoil. Celsius says BitMEX liquidated 1,325.84 BTC from its position on March 12. It also claims investment fund JST lost another 5,034.33 BTC the following day.
Celsius alleges that BitMEX’s automated liquidation system intensified the market decline. The estate argues that forced sales created a cycle in which falling prices triggered more liquidations.
The lawsuit also challenges BitMEX’s insurance-fund structure. Celsius alleges the exchange controlled both the liquidation mechanism and a fund that benefited from certain liquidations.
The allegations remain unproven, and BitMEX has not yet filed a response.
Legal Claim Meets BitMEX Wind-Down
The timing adds urgency to the dispute. BitMEX will cease trading services on Sept. 23 at 04:00 UTC. After that deadline, users can still access their accounts and withdraw remaining assets, but trading services will end.
For Celsius creditors, the lawsuit represents another potential recovery channel from the lender’s bankruptcy estate. However, any recovery will depend on the court’s findings and the remedies ultimately granted.
The case also highlights how disputes from the 2020 crypto market crash continue to surface years later. For BitMEX, mean while, the litigation arrives as one of crypto’s long-running derivatives exchanges prepares to close its trading operations.
