BitMEX faces Celsius lawsuit ahead of exchange closure
The Celsius estate alleges BitMEX wrongfully liquidated and seized 6,360 BTC, worth nearly $490 million, during the March 2020 market crash.
The Celsius estate alleges BitMEX wrongfully liquidated and seized 6,360 BTC, worth nearly $490 million, during the March 2020 market crash.
The Celsius bankruptcy estate sued five BitMEX-linked companies, alleging fraud, market manipulation and wrongful liquidations during the March 2020 market crash.
The complaint was filed on Sept. 12 in the US Bankruptcy Court for the Southern District of New York by Celsius entities acting through estate representative Blockchain Recovery Investment Consortium (BRIC). Defendants include HDR Global Trading, ABS Global Trading, Shine Effort, 100x Holdings and HDR Global Services.
According to the complaint, some liquidation sell orders were placed at prices more than 24% below the next-best ask available on the platform. It also alleges that Bitcoin traded at a lower price on BitMEX than on competing exchanges as the liquidation cycle intensified.