Celsius Network Sues BitMEX for $495 Million Over 2020 Liquidations

Bankrupt cryptocurrency lender Celsius Network has filed a $495 million lawsuit against crypto derivatives exchange BitMEX, alleging that the platform wrongfully liquidated Celsius positions during the chaotic market crash of March 2020, according to a report from CoinDesk. The legal action marks one of the largest financial claims to emerge from the cascading failures that rattled the crypto industry during that period.

The lawsuit centers on events from March 2020, when a broad market selloff — often referred to as "Black Thursday" — sent Bitcoin and other digital asset prices into a steep and rapid decline. Celsius contends that BitMEX improperly handled the liquidation of its trading positions during that turbulent window, resulting in hundreds of millions of dollars in losses that the lending firm argues it should not have suffered.

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The claim adds another layer of complexity to Celsius's ongoing bankruptcy proceedings, which have already ensnared thousands of retail customers who found their funds frozen when the platform collapsed in 2022. Celsius's bankruptcy estate has been aggressively pursuing litigation and asset recovery strategies in an effort to maximize repayments to creditors, and this suit against BitMEX appears to be the latest front in that broader effort.

BitMEX, once among the most dominant crypto derivatives platforms globally, has itself faced significant legal and regulatory scrutiny in recent years, including charges brought by U.S. authorities related to anti-money-laundering compliance failures. How the exchange responds to Celsius's claims — and whether the case proceeds to trial or reaches a settlement — could have meaningful implications for both parties and for how liquidation practices during volatile markets are evaluated legally.

Continue reading at CoinDesk.