Celsius Debtors Sue BitMEX for Over $100 Million

Protos reports that Celsius Network debtors filed a lawsuit against BitMEX on September 12 seeking more than $100 million. The suit alleges wrongful liquidation and seizure of Celsius' Bitcoin around the March 12, 2020 market crash.

The complaint centers on a leveraged long XBTM20 position that the exchange terminated during the volatility of that period. Debtors accuse BitMEX of using a “fraudulent scheme to defraud its own customers” to seize the Bitcoin collateralizing the trading position. This allegation conflicts with statements made by Celsius CEO Alex Mashinsky on March 13, 2020.

Mashinsky told an audience the day after the alleged liquidation: “We don’t trade. We don’t buy and sell coins. We don’t decide, oh, BTC’s going up or down.” He also claimed: “Fortunately, Celsius is not a trader,” attributing the company's performance to its lending division rather than trading.

On March 12, 2020, BitMEX processed over $700 million in liquidations, with more than 90% representing forced closures of long derivatives. The exchange halted new trading activities on August 26. In a notice released on July 23, 2026, the company stated it would terminate all operations by September 23 at 04:00 UTC.