Celsius Estate Sues BitMEX Over $490M Bitcoin Liquidation
The estate of the defunct crypto lender Celsius has filed a lawsuit against BitMEX, alleging that the derivatives exchange improperly liquidated a significant holding of Bitcoin during a period of extreme market volatility. The suit claims that BitMEX wrongfully seized 6,360 BTC, a stash valued at approximately $490 million at the time of the March 2020 market crash.
This legal action adds another layer of complexity to the ongoing fallout from the collapse of major crypto entities. Celsius, which filed for bankruptcy in July 2022, is seeking to recover assets for its creditors. The outcome of this lawsuit could impact the distribution of remaining assets to Celsius customers and creditors.
The specific allegations center on the circumstances of the liquidation during the sharp market downturn of March 2020, a period that saw widespread liquidations across the crypto market. The Celsius estate aims to hold BitMEX accountable for what it deems an improper seizure of these Bitcoin holdings.
This is an AI-assisted summary. Original reporting by Cointelegraph.
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