Celsius Estate Sues BitMEX Over 6,360 BTC in Alleged 2020 Crash Liquidations

Celsius entities, represented by Blockchain Recovery Investment Consortium, filed a complaint on September 12 in the U.S. Bankruptcy Court for the Southern District of New York against five BitMEX-linked companies, alleging fraud, market manipulation, wrongful liquidation and conversion involving 6,360.1666 BTC. The filing turns disputed liquidations during the March 2020 Bitcoin crash into a claim by the Celsius estate for the return of Bitcoin and additional damages.

Celsius estate files bankruptcy complaint

The complaint was filed in the Southern District of New York, according to an OffshoreAlert court-filing listing. It names five companies linked to BitMEX, though the supplied filing record does not identify them individually.

The allegations concern liquidations during the sharp market downturn of March 12–13, 2020. The estate alleges that the defendants' actions improperly disposed of Bitcoin collateral and seeks remedies through Celsius' bankruptcy proceedings.

Celsius collateral and JST liquidations

Celsius collateral accounted for 1,325.84 BTC allegedly liquidated on March 12, 2020, while investment fund JST accounted for another 5,034.33 BTC allegedly liquidated the following day, according to Cointelegraph.

JST later assigned its related claims to the Celsius estate, bringing both alleged losses into the estate’s action. The action cites 6,360.1666 BTC in total.

Allegations over liquidation controls

According to CoinDesk, the Celsius estate alleges that BitMEX controlled the prices that triggered liquidations, the liquidation engine and the platform’s insurance fund.

The estate also alleges that certain liquidation sell orders were filled at prices more than 24% below the next-best ask on the platform.

Together, the assertions support the complaint’s claims of manipulation and wrongful liquidation. They remain allegations in a civil complaint.

Estate seeks Bitcoin return and damages

The estate is seeking the return of at least 6,360.16 BTC or its equivalent value. It also seeks statutory, punitive and potentially treble damages, profits and legal costs, Cointelegraph reported.

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