Celsius Bankruptcy Trust Sues BitMEX Over Alleged Unfair Liquidation

The Celsius bankruptcy estate has filed a lawsuit against cryptocurrency exchange BitMEX, alleging improper liquidation and market manipulation during the 2020 crypto crash. According to CoinTelegraph, the bankruptcy estate submitted court documents in New York Bankruptcy Court on April 16th, naming five BitMEX-related entities including HDR Global Trading, ABS Global Trading, and HDR Global Services. The case was filed by BlockChain Recovery Investments Consortium (BRIC), acting as the estate's representative.

The bankruptcy estate claims BitMEX unfairly liquidated Celsius' positions in March 2020, taking collateral equivalent to approximately 1,326 BTC. It further alleges that the next day, a JST investment fund position was liquidated, resulting in an additional loss of about 5,034 BTC, which was later transferred to the estate by JST.

The total assets being sought for return amount to approximately 6,360 BTC. The estate is also seeking punitive damages, unjust enrichment recovery, and legal costs. This lawsuit comes ahead of BitMEX's planned shutdown on April 23rd, when it will cease exchange operations.