Celsius seeks 6,360 BTC worth roughly $495 million from BitMEX. The complaint alleges manipulated liquidations during Bitcoin’s March 2020 crash. The filing arrives before BitMEX ends exchang
The Celsius BitMEX lawsuit seeks recovery of 6,360 BTC, valued near $495 million when filed. Celsius Network’s bankruptcy estate accuses the derivatives exchange of fraud, market manipulation, and wrongful liquidation during Bitcoin’s March 2020 crash. The complaint was filed September 12 in the U.S. Bankruptcy Court for the Southern District of New York.
The Celsius BitMEX lawsuit centers on leveraged XBTM20 positions and claims transferred from investment-fund group JST. BRIC filed the case as Celsius’s litigation administrator and complex asset recovery manager.
Defendants include HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings, and HDR Global Services. Those entities operated BitMEX from Seychelles, Hong Kong, and Bermuda.
Celsius alleges BitMEX controlled margin levels, trigger prices, and the liquidation engine handling customer positions. It claims sell walls and orders 24% below the next-best ask accelerated forced sales.
The Celsius BitMEX lawsuit says those orders deepened a liquidation cascade as Bitcoin fell. Bitcoin dropped from about $7,200 to $5,678 within 15 minutes, while $702 million in positions were liquidated.
The complaint says BitMEX’s Bitcoin price moved materially below prices on other exchanges. Celsius also links a reported DDoS disruption with halted liquidations and rapid price recovery.
The Celsius BitMEX lawsuit argues these events allowed the exchange to benefit from customer losses.
The Celsius BitMEX lawsuit arrives before BitMEX’s planned September 23 shutdown, announced after a strategic review. It is the second major lawsuit filed after the exchange disclosed its closure plans.
Celsius seeks the return of the Bitcoin and additional damages from the alleged misconduct. At filing prices, the disputed holdings were worth about $495 million.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.<p>The post Celsius BitMEX Lawsuit Seeks $495 Million Over Bitcoin Seizure first appeared on Coin Crypto Newz.</p>
