Celsius Network Sues BitMEX for $495 Million Over 2020 Liquidations
Bankrupt crypto lender Celsius has filed a $495 million lawsuit against BitMEX over alleged improper liquidations during the March 2020 market crash.
Celsius Network, the bankrupt cryptocurrency lending platform, has filed a lawsuit seeking $495 million from crypto derivatives exchange BitMEX, alleging that the exchange improperly liquidated Celsius positions during the sharp market downturn of March 2020, according to a CoinDesk report.
The lawsuit centers on events surrounding the dramatic crypto market collapse in March 2020, a period when Bitcoin and other digital assets shed significant value in a matter of days, triggering cascading liquidations across leveraged trading platforms. Celsius contends that BitMEX's handling of its positions during that period caused outsized and unjustified financial damage.
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The legal action adds another chapter to Celsius's prolonged post-bankruptcy proceedings, during which the company's estate has aggressively pursued claims against third parties in an effort to recover assets for creditors. Celsius filed for Chapter 11 bankruptcy protection in July 2022 following a collapse in crypto prices and a subsequent freeze on customer withdrawals that left depositors unable to access funds.
The $495 million figure represents a substantial claim relative to the broader Celsius bankruptcy estate and signals that the company's legal team is casting a wide net in its recovery efforts. Litigation of this scale against a major derivatives venue could have broader implications for how crypto exchanges document and execute liquidation procedures during periods of extreme market volatility.
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