Celsius sues BitMEX for $495M ahead of Sept. 23 closure

Celsius filed a $495 million complaint on Sept. 12 in the U.S. Bankruptcy Court for the Southern District of New York, alleging fraud, market manipulation and wrongful liquidations by entities that operated the BitMEX exchange. The filing seeks the return of 6,360 BTC that Celsius says was taken during the March 12, 2020 market collapse. The suit was filed 11 days before BitMEX planned to stop trading on Sept. 23.

The case was filed by the Blockchain Recovery Investment Consortium, or BRIC, which serves as Celsius’s litigation administrator and asset recovery manager. Named defendants include HDR Global Trading Ltd. (Seychelles), ABS Global Trading Ltd. (Hong Kong), Shine Effort Inc. Ltd. (Hong Kong), and Bermuda entities 100x Holdings Ltd. and HDR Global Services Ltd., which together operated under the BitMEX name.

Celsius alleges BitMEX’s platform and liquidation systems were designed to force sales of customer positions and seize collateral during the March 2020 selloff. The complaint states: “While BitMEX made multiple representations that it would maintain an orderly market for its derivatives contracts, BitMEX knew these representations were false. Instead of maintaining an orderly market, BitMEX intentionally designed its platform and liquidation procedures to cause liquidations of collateral and defraud its own customers.”

On March 12, 2020, Bitcoin fell from about $7,200 to roughly $5,678 within minutes as the emerging coronavirus pandemic triggered a broad selloff. The complaint cites roughly $702 million of positions liquidated on BitMEX during the initial crash, with most affected positions being long. BitMEX was then a leading venue for highly leveraged Bitcoin trading, where automatic margin enforcement can close positions and add downward price pressure.

Celsius must prove the losses resulted from unlawful conduct by BitMEX rather than from extreme market volatility or the mechanics of leveraged contracts. Defendants may challenge the case on jurisdictional grounds, statutes of limitation or the sufficiency of the legal claims. The allegations in the complaint have not been proven in court.

The complaint follows earlier steps in the Celsius bankruptcy. A September 2023 filing listed HDR Global Trading as a potential litigation target. BRIC was appointed in 2024 to pursue litigation and recover complex assets for the estate. BRIC previously recovered proceeds for Celsius, including a $299.5 million settlement with Tether in October 2025.

BitMEX announced in July that it would wind down operations and stop accepting new accounts. The exchange limited customers’ ability to increase positions in late August and has been settling and delisting contracts ahead of the Sept. 23 closure, including early settlements of certain BTC and ETH perpetual swaps and futures on Sept. 16. BitMEX has stated the shutdown was not prompted by financial distress, a hack or immediate regulatory pressure, and that customer assets exceed liabilities; users will retain the ability to withdraw balances after trading ends.

Simon Dixon, a Celsius creditor and bankruptcy observer, suggested the timing of the filing could reflect an effort to preserve claims or assets while BitMEX completes its wind-down. He noted there is no public record of an injunction to block the closure or restrict transfers. The court will decide whether the case moves into discovery over BitMEX’s 2020 trading and liquidation systems or faces early legal challenges.