Celsius Network’s bankruptcy estate has escalated its asset-recovery efforts with a lawsuit against BitMEX and five affiliated entities, seeking the return of 6,360.17 Bitcoin valued at roughly $495 million. The complaint was filed on Sept. 12 in the U.S. Bankruptcy Court for the Southern District of New York, just 11 days before BitMEX is set to halt trading on Sept. 23.
The litigation administrator, Blockchain Recovery Investment Consortium (BRIC), filed the case on behalf of Celsius. It accuses the BitMEX-linked companies of fraud, breach of contract, fraudulent transfer, conversion, breach of the implied duty of good faith and fair dealing, and unjust enrichment.
According to the filing, Celsius lost 1,325.84 BTC when its position was liquidated on March 12, 2020, while investment fund JST lost another 5,034.33 BTC the following day and later assigned its claims to the Celsius estate. The positions were allegedly designed to earn a return if Bitcoin held its value or rose, but the COVID-driven market crash triggered one of the most volatile periods in the cryptocurrency’s history.
The core allegation is that BitMEX controlled both sides of the liquidation process and had a financial interest in the insurance fund that received assets from some liquidations. The complaint states: “BitMEX intentionally designed its platform and liquidation procedures to cause liquidations of collateral and defraud its own customers.” Rather than selling only enough collateral to cover obligations, the exchange allegedly retained excess Bitcoin after closing positions.
The defendants are HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings and HDR Global Services, with links across Bermuda, the Cayman Islands, England, Hong Kong, the Seychelles and the United States. The claims remain unproven and will be tested through the court process.
This is the second lawsuit challenging BitMEX’s liquidation practices since the exchange announced in July that it would close. A proposed class action filed in July by BKX Services and trader David Namdar alleged similar forced liquidations and retention of 622.66 BTC. BitMEX has also faced prior U.S. enforcement action, including a $100 million criminal fine against HDR Global Trading in January 2025 for Bank Secrecy Act violations.
For Celsius creditors, the lawsuit is another potential recovery avenue. Celsius froze withdrawals in June 2022, filed for bankruptcy in July 2022, and has since distributed more than $3 billion in crypto and other property under its restructuring plan. A third payout round began in August 2025 with about $220.6 million allocated to eligible creditors. Recoveries from estate litigation could add to those distributions, though the BitMEX complaint does not guarantee a payment or set a timetable.
