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Point of Focus
- Celsius’ bankruptcy estate is seeking about $495 million from BitMEX-linked entities.
- The lawsuit alleges fraud and market manipulation during Bitcoin’s March 2020 crash.
- The complaint was filed 11 days before BitMEX is scheduled to stop trading on Sept. 23.
Celsius Network’s bankruptcy estate has launched a $495 million lawsuit against entities linked to BitMEX, alleging the crypto exchange manipulated its liquidation system during Bitcoin’s historic March 2020 crash.
The complaint was filed in the US Bankruptcy Court for the Southern District of New York on Sept. 12, just 11 days before BitMEX is scheduled to stop trading on Sept. 23.
Blockchain Recovery Investment Consortium (BRIC) brought the case on behalf of Celsius and affiliated entities. It concerns approximately 6,360 Bitcoin (BTC), worth around $495 million at the time of the filing, that the plaintiffs claim were wrongfully liquidated or seized.
The lawsuit alleges fraud, market manipulation and other misconduct. The claims remain allegations and have not been established by the court.
Celsius targets BitMEX over 2020 Bitcoin crash
The dispute dates back to March 12 and 13, 2020, when Bitcoin suffered one of the sharpest crashes in its history amid a broader global market selloff.
Celsius alleges BitMEX manipulated trading and liquidation mechanisms during the turmoil, allowing the exchange to benefit from forced liquidations.
The claims involve Celsius’ XBTM20 position as well as rights transferred to Celsius concerning a separate JST liquidation on March 13.
Celsius Sues BitMEX 11 Days Before Exchange Shutdown, Seeking $495 Million
Celsius’ bankruptcy estate sued entities linked to BitMEX in the U.S. Bankruptcy Court for the Southern District of New York on Sept. 12. The complaint alleges fraud, market manipulation and wrongful… pic.twitter.com/NeXYwJGjN9
— Wu Blockchain (@WuBlockchain) September 16, 2026
According to the complaint, BitMEX controlled several components of the process, including margin requirements, the prices used to trigger liquidations and the liquidation engine responsible for selling positions.
Celsius alleges the system generated aggressive sell orders during the crash, including sell walls and orders priced more than 24% below the next-best ask.
The estate argues those transactions contributed to a cascade of liquidations that intensified downward pressure on Bitcoin.
6,360 Bitcoin at center of $495M claim
Celsius is seeking to recover roughly 6,360 BTC alongside additional damages.
The lawsuit also alleges that Bitcoin traded materially lower on BitMEX than on competing exchanges during parts of the March 2020 crash.
According to the complaint, BitMEX’s reported distributed denial-of-service (DDoS) disruption then coincided with a pause in liquidations and a rapid recovery in Bitcoin’s price.
Celsius argues that sequence supports its allegations concerning how the exchange operated its liquidation infrastructure during the extreme market conditions.
BitMEX has not been found liable for the alleged conduct, and the filing represents the plaintiffs’ account of events.
Lawsuit lands days before BitMEX trading shutdown
The timing gives the years-old dispute renewed significance.
BitMEX is scheduled to stop trading on Sept. 23, meaning Celsius filed its lawsuit less than two weeks before the exchange’s planned shutdown.
On 21st Sept 2026 at 12:00 UTC, BitMEX will delist all remaining spot pairs.
The spot pairs will cease trading at 12:00 UTC on 21st Sept 2026.
On 22nd Sept 2026 at 04:00 UTC, we will cease support for Convert for all remaining tokens.
Seeking more details? Read our blog:… pic.twitter.com/OVTqnqFstw
— BitMEX (@BitMEX) September 16, 2026
For Celsius, meanwhile, the action forms part of the broader effort to recover assets following the crypto lender’s collapse and bankruptcy.
BRIC has been pursuing claims and potential recoveries on behalf of the Celsius estate, with any proceeds potentially adding to assets available through the bankruptcy process.
The new lawsuit now seeks to revisit one of crypto’s most chaotic trading episodes more than six years after the March 2020 crash, with nearly half a billion dollars of Bitcoin at current filing-date valuations at stake.
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