Celsius sues BitMEX for $495 million 11 days before shutdown

Celsius Network's bankruptcy estate sued entities operating under the BitMEX name. Celsius seeks $495 million tied to 6,360 BTC. The complaint was filed on Sept. 12 in the US Bankruptcy Court for the Southern District of New York. The complaint accuses BitMEX entities of fraud, market manipulation and wrongful liquidations during Bitcoin's March 2020 selloff. Celsius alleges that BitMEX's conduct caused the seizure of digital assets belonging to Celsius and investment-fund group JST. Blockchain Recovery Investment Consortium brought the case for Celsius entities as the estate's litigation administrator and complex asset recovery manager. The defendants include HDR Global Trading Ltd., ABS Global Trading Ltd., Shine Effort Inc. Ltd., 100x Holdings Ltd. and HDR Global Services Ltd. BitMEX announced in July that it would shut down its exchange on Sept. 23 after a strategic review. The exchange stopped accepting new accounts after announcing the closure. BitMEX began limiting customers' ability to increase positions in late August. BitMEX has been settling and delisting contracts ahead of the shutdown. The exchange also settled several BTC and ETH perpetual swaps and futures early on Sept. 16. During the March 12, 2020 market panic, Bitcoin fell from about $7,200 to near $5,678 within roughly 15 minutes at one stage. About $702 million of positions were liquidated on BitMEX during the initial crash. Nearly all of those liquidations were long positions. The complaint alleges that BitMEX intentionally designed its platform and liquidation procedures to cause collateral liquidations and defraud customers. The allegations remain unproven. The court has not determined whether BitMEX or its related entities are liable. Celsius first identified HDR Global Trading Ltd. as a possible litigation target in a September 2023 bankruptcy filing. BRIC was appointed in 2024 to pursue litigation and other complex assets for creditors. Celsius reached a $299.5 million settlement with Tether in October 2025 after litigation brought by the estate. Simon Dixon said the filing's timing may indicate that the litigation administrator is considering measures beyond a damages award. Dixon said a filing before a wind-down can help preserve claims against assets, entities and counterparties. He said there is no evidence that Celsius obtained an injunction blocking the closure or restricting asset transfers. Any such action would require separate legal action or court approval. BitMEX said the closure was not prompted by financial distress, a hack or immediate regulatory pressure. BitMEX also said customer assets exceed liabilities and users will retain access after trading ends to withdraw remaining balances. The lawsuit can continue after the exchange ceases operations. The defendants may challenge the claims on jurisdiction, limitation periods or legal sufficiency.