Celsius Network’s bankruptcy estate has filed a lawsuit against entities linked to BitMEX, seeking the return of 6,360.1666 Bitcoin currently valued at roughly $495 million. The complaint alleges that wrongful liquidations and market manipulation during the March 2020 Bitcoin crash caused Celsius and investment fund JST to lose thousands of BTC.
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The lawsuit was filed on September 12, 2026, in the U.S. Bankruptcy Court for the Southern District of New York by the Blockchain Recovery Investment Consortium (BRIC), which manages litigation and complex asset recovery for the Celsius bankruptcy estate. The timing has drawn attention because BitMEX is scheduled to shut down its exchange operations on September 23, just 11 days after the complaint was filed.
Why does this matter?
The case centers on two large Bitcoin liquidations that occurred during one of the most severe market dislocations in crypto history.
According to the complaint, Celsius lost 1,325.8385 BTC in a forced liquidation on March 12, 2020. Celsius is also pursuing claims assigned to it by JST Alpha 1, an investment fund that allegedly lost another 5,034.3281 BTC in a liquidation the following day.
Together, the claims total 6,360.1666 BTC. OffshoreAlert reported that Bitcoin is currently worth approximately $495 million.
Celsius alleges that BitMEX’s liquidation mechanisms were improperly designed and operated during the March 2020 crash. The complaint further alleges that BitMEX controlled both the system determining when customer positions were liquidated and an insurance fund that could benefit from liquidation activity.
These are allegations contained in the complaint and have not been established in court. BitMEX had not filed a response to the allegations as of the latest reports.
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What Happened During the March 2020 Bitcoin Crash?
The lawsuit goes back to March 12, 2020, when Bitcoin experienced an extreme two-stage decline.
Multicoin Capital’s contemporaneous analysis described the first decline as roughly 25% before a second sell-off caused the broader crypto market structure to break down. Bitcoin briefly fell below $4,000, marking its worst single-day decline in seven years at the time.
BitMEX played a significant role in the market dislocation because of its large leveraged derivatives market. Multicoin’s analysis said BitMEX began liquidating leveraged long positions as Bitcoin prices fell, with those liquidations contributing to a cascade. At one point, the report said the exchange had approximately $20 million of bids against more than $200 million of long positions awaiting liquidation.
The episode illustrates why leveraged derivatives positions can create additional pressure during sharp Bitcoin declines. When collateral falls rapidly, exchanges can automatically close positions, potentially adding selling pressure while liquidity is already limited.
Celsius’ lawsuit now asks a court to examine whether the liquidation of its and JST’s positions crossed the line from ordinary exchange risk management into conduct that created liability for BitMEX.
Celsius Points to 6,360 BTC in Two Liquidations
The first liquidation involved Celsius itself. The complaint alleges that BitMEX liquidated 1,325.8385 BTC belonging to Celsius on March 12, 2020. The estate is also pursuing JST’s claim following the investment fund’s reported loss of 5,034.3281 BTC during a separate liquidation on March 13.
Based on reports of the complaint, it is said that JST eventually transferred the claims to Celsius, enabling the bankruptcy estate to collect the total. Hence, the total claim amounts to 6,360.1666 BTC.
Celsius claims that it is entitled to the recovery of either the Bitcoin or the value of the Bitcoin together with other compensatory damages. The plaintiff also claims the recovery of profit arising from the conduct of the defendants.
The claim in today’s dollars is much higher than the amount of the Bitcoin when the liquidations occurred in 2020. It shows how much Bitcoin has appreciated over time and how the dispute that arose historically is related to the valuation of an asset worth around $500 million.
Why is the BitMEX Shutdown Relevant?
The lawsuit arrives shortly before BitMEX’s scheduled closure. The BitMEX exchange is set to close down on September 23, 2026, at 04:00 UTC, according to an announcement made by the organization on July 23. This move is in line with a business review done by the organization.
According to BitMEX, the registration of new accounts was suspended. It also advised users to liquidate their open positions and withdraw their funds ahead of the closure period. It added that risk controls will be in place from August 26, after which, users will only have the option of reducing their positions before eventually having their positions closed.
However, the shutdown itself does not create any relationship with the Celsius lawsuit. The publicly announced statement by BitMEX mentioned that the reason for the shutdown was its strategic review and not the Celsius lawsuit.
But the timeliness also adds a further procedural element to the situation. It is because Celsius only filed the lawsuit 11 days before the shutdown was scheduled, but the matter pertains to events that took place more than six years ago. Thus, even if BitMEX stops functioning as a trading platform, the issues raised will still be dealt with legally in court.
BRIC Has Pursued Celsius Recovery Claims
The BitMEX case is also part of a wider effort to recover assets for Celsius creditors. The BRIC was established by GXD Labs and VanEck and appointed Complex Asset Recovery Manager and Litigation Administrator of the bankruptcy estate of Celsius in January 2024. It will handle the issues relating to litigation and illiquidity of the assets within the estate.
This group had made claims against Tether before. In October 2025, BRIC announced a settlement of $299.5 million with Tether through an adversary proceeding initiated in August 2024. According to VanEck, the settlement amount was paid into the bankruptcy estate of Celsius Network.
The recovery process sets the stage for the reasons why the BitMEX litigation suit is being initiated at such a late time in relation to the actual incidents. The lawsuit is not really about trading but rather about the recovery of assets by the estate.
What happens next?
It all depends on how the defendants react to the allegations made by Celsius and how the bankruptcy court deals with the claims.
The important questions include if the liquidations of March 2020 took place in accordance with the provisions of the contract of BitMEX, if there was an issue with the way the liquidations processes functioned, and Celsius can prove that the defendants are liable for 6,360.1666 BTC.
However, the March 2020 market crash is the background against which this case occurs, and the court must decide whether the allegations made by Celsius prove liability.
The legal case also brings back into focus the dangers that accompany derivatives markets that are heavily leveraged and automated liquidations in times of extreme volatility in terms of crypto markets. The dispute stands out due to the fact that it centers around a large claim against Bitcoin that is part of bankruptcy proceedings right when the exchanges in question is about to cease operations.
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