Celsius Network Files Lawsuit Against BitMEX Affiliates Over 6,360 BTC Seizure

Celsius Network's bankruptcy estate has filed a lawsuit against five BitMEX-affiliated companies over the seizure of 6,360.1666 Bitcoin (BTC) through two forced liquidations during the March 2020 market crash.

The lawsuit, submitted on September 12, was filed just 11 days before BitMEX permanently halted trading. Celsius lost the coins under founder Alex Mashinsky, who was sentenced to a 12-year prison term for fraud.

During the first liquidation on March 12 at 23:47 UTC, BitMEX liquidated Celsius' Bitcoin futures position, recovering 1,325.8385 BTC. Celsius sent an additional 350 BTC as margin, but BitMEX detected the transfer too late to prevent the liquidation.

The second liquidation occurred on March 13 at 02:50 UTC involving JST Alpha 1 fund, where another 5,034.3281 BTC disappeared. The fund transferred these claims to Celsius in April 2025 per the lawsuit documents.

Celsius argues that the price drop from $4,502 to $3,422 during this period was unreasonable for trading activity. The case also cites an alleged market manipulation and fraud by BitMEX affiliates.

The Blockchain Recovery Investment Consortium filed the suit in New York Southern Bankruptcy Court on behalf of Celsius' estate. VanEck and GXD Labs were appointed to recover assets in 2024. Defendants include HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings, and HDR Global Services.

The seized BTC is valued at approximately $481 million based on Wednesday's Bitcoin price of $75,702. The same recovery team secured a $299.5 million settlement from Tether last October.