Celsius Estate Sues BitMEX Over $495M in 2020 Liquidations

Celsius Network’s bankruptcy estate has sued five entities linked to BitMEX, seeking to recover approximately 6,360.1666 BTC that it alleges was lost through liquidations during the March 2020 market crash.

The complaint was filed on September 12, 2026, in the U.S. Bankruptcy Court for the Southern District of New York. The estate is acting through Blockchain Recovery Investment Consortium.

The bitcoin sought is valued at roughly $495 million using the valuation cited in the claim. The case remains unresolved, and the allegations have not been proven in court.

Entities named in the complaint

The defendants named in the action are HDR Global Trading, ABS Global Trading, 100x Holdings, Shine Effort, and HDR Global Services. The estate’s claims concern trading activity and alleged forced liquidations during the sharp Bitcoin market decline in March 2020.

The lawsuit advances claims including fraud, wrongful liquidation, conversion, breach of contract, and unjust enrichment. Those are allegations set out by the plaintiff, rather than findings by the court.

• Plaintiff: Celsius Network’s bankruptcy estate, through Blockchain Recovery Investment Consortium
• Venue: U.S. Bankruptcy Court for the Southern District of New York
• Amount sought: approximately 6,360.1666 BTC, valued in the claim at about $495 million

Dispute centers on the March 2020 sell-off

The complaint ties the disputed BTC to the market crash of March 2020, when severe volatility affected Bitcoin and derivatives markets. Celsius’s estate alleges that BitMEX-related entities improperly liquidated positions and retained the resulting value.

The filing places the disputed liquidation activity at the center of a substantial recovery effort in Celsius’s bankruptcy process. Its outcome will depend on the parties’ arguments and the court’s eventual handling of the claims.

What happens next

No judgment has been reported in the case. BitMEX-linked defendants may respond to the complaint, and the litigation could proceed through motions, evidence gathering, settlement discussions, or trial unless resolved earlier.

The case arrives as Bitcoin-related companies continue to face legal and operational scrutiny. Separately, the industry has seen ongoing developments ranging from software maintenance to broader market moves, including the recent Bitcoin Core 31.1 release and a report on Bitcoin falling below $77,000 after August PPI data.

Continue reading: Bitcoin Core 31.1 release on BTCNews.

Continue reading: Bitcoin falling below $77,000 after August PPI data on BTCNews.

Sources

• OffshoreAlert: Celsius Network Ltd. et al v. BitMEX: Complaint (‘BTC6.36K Fraud’)
• ElevenFlo: Celsius Network LLC bankruptcy: docket, status and key dates
• CoinDesk: Celsius sues BitMEX for $495 million over 2020 crash liquidations
• crypto.news: Celsius estate sues BitMEX over $495M in Bitcoin liquidations

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