Celsius Estate Sues BitMEX, Seeks Return of 6,360 Bitcoin Ahead of Shutdown
Summary
- Celsius's bankruptcy estate said it filed a lawsuit against BitMEX over the alleged wrongful liquidation of about 1,326 Bitcoin and market manipulation.
- The estate said an additional 5,034 Bitcoin was lost after the liquidation of investment fund JST's position, and that it had been assigned the related claims.
- The bankruptcy estate said it is seeking the return of a total of 6,360 Bitcoin, along with punitive damages, disgorgement and litigation costs.
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The bankruptcy estate of crypto lender Celsius has sued BitMEX, alleging wrongful liquidations and market manipulation during the March 2020 crypto market crash.
Cointelegraph reported on Sept. 16 that the Celsius estate recently filed a complaint in the U.S. Bankruptcy Court in New York against five BitMEX-related entities, including HDR Global Trading, ABS Global Trading and HDR Global Services. The lawsuit was filed by the Blockchain Recovery Investment Consortium, or BRIC, acting on behalf of the estate.
The estate alleges that BitMEX improperly liquidated Celsius positions in March 2020 and took collateral totaling about 1,326 Bitcoin. It also said investment fund JST's position was liquidated the following day, resulting in an additional loss of about 5,034 Bitcoin. JST later assigned the related claims to the estate.
The estate is seeking the return of about 6,360 Bitcoin in total. It is also asking for punitive damages, disgorgement and litigation costs.
The lawsuit was filed ahead of BitMEX's planned shutdown. The exchange plans to cease operations on Sept. 23.
