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09/17/2026

Celsius Sues BitMEX for $495M Over 2020 Crash Liquidations

What happened: The Celsius bankruptcy estate, via the Blockchain Recovery Investment Consortium, filed a $495 million lawsuit against BitMEX and affiliates in the US Bankruptcy Court for the Southern

Celsius Sues BitMEX for $495M Over 2020 Crash Liquidations

What happened: The Celsius bankruptcy estate, via the Blockchain Recovery Investment Consortium, filed a $495 million lawsuit against BitMEX and affiliates in the US Bankruptcy Court for the Southern District of New York. The complaint alleges BitMEX's liquidation engine and insurance fund were designed to profit from customer liquidations, leading to the loss of 6,360 BTC during the March 2020 Covid crash. The suit was filed just 11 days before BitMEX's scheduled shutdown on September 23, 2026.

Why it matters: The timing of the lawsuit raises questions about the estate's ability to recover funds as BitMEX winds down operations. It also exposes the gap between Celsius's public "delta-neutral" marketing and its actual risk-taking—running highly leveraged long positions. This is the second lawsuit against BitMEX since its July wind-down announcement, highlighting ongoing legal and reputational risks for legacy crypto platforms.

Source: CoinDesk