Celsius sues BitMEX for $495 million over 2020 crash liquidations
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Bankrupt crypto lender Celsius Network's estate has sued BitMEX over forced liquidations during the March 2020 Covid crash, seeking the return of 6,360 BTC now worth roughly $495 million.
Key facts
- Bankrupt crypto lender Celsius Network's estate has sued BitMEX over forced liquidations during the March 2020 Covid crash, seeking the return of 6,360 BTC now worth roughly $495 million
- Celsius says it lost 1,325.84 BTC in a single liquidation on March 12, 2020, and is pursuing claims assigned to it by investment fund JST, which lost 5,034.33 BTC the following day
- The lender, which paid yield on user deposits and collapsed in 2022, marketed low-risk, delta-neutral strategies, arbitrage, funding-rate harvesting, carry trades
- As stablecoins move into regulated finance, APAC is becoming a key proving ground
Summary
Celsius's bankruptcy estate filed suit against five BitMEX entities on Sept. 12, alleging fraud, market manipulation and wrongful liquidations during the March 2020 crash. The claim covers 1,325.84 BTC lost by Celsius and 5,034.33 BTC lost by investment fund JST, whose claims were assigned to the estate, 6,360 BTC in total, worth roughly $495 million. BitMEX stops trading Sept. 23, giving the estate 11 days to act against a defendant that is winding down. The complaint was filed Sept. 12 in the U.S. Bankruptcy Court for the Southern District of New York by Blockchain Recovery Investment Consortium, the litigation administrator appointed in the Celsius bankruptcy.