Celsius Debtors Sue BitMEX Over 2020 Bitcoin Trades

Celsius debtors file lawsuit against closing exchange BitMEX

Celsius Network debtors filed a lawsuit against crypto exchange BitMEX on September 12, 2026. The suit seeks over $100 million in damages, with the filing coming just before BitMEX shuts down its operations on September 23, 2026. The debtors claim that BitMEX wrongfully liquidated and seized Celsius' Bitcoin (BTC) collateral during a market crash in March 2020.

This legal action highlights a discrepancy in the historical record of Celsius. One day after the 2020 incident, Celsius CEO Alex Mashinsky publicly stated that the company did not engage in trading. He told a YouTube audience that Celsius did not buy or sell coins, positioning the company as a lending platform rather than an active trader.

Key points in the lawsuit

• Alleged Fraud: Debtors allege BitMEX used a fraudulent scheme to defraud customers and rigged its liquidation engine.
• Specific Asset: The suit focuses on Celsius' leveraged long position in XBTM20, a Bitcoin derivative, which was liquidated on March 12, 2020.
• Financial Stakes: The plaintiffs are claiming damages exceeding $100 million from this event.
• Timing: The lawsuit was filed on September 12, 2026, only ten days before BitMEX is scheduled to end all exchange services.

Official BitMEX closure timeline

BitMEX has officially announced its closure schedule. As of July 23, 2026, the exchange began encouraging users to withdraw their funds. By August 26, 2026, it stopped accepting trades for new positions. The exchange plans to terminate all services entirely on September 23, 2026, at 04:00 UTC. This timeline means Celsius debtors have a very short window to resolve their claims before the defendant ceases operations.

Context of the 2020 market crash

On March 12, 2020, a sharp decline in crypto markets triggered over $700 million in liquidations on BitMEX. According to reports from that time, more than 90% of these forced closures were for long positions, which are bets that an asset price will rise. Celsius, according to the new lawsuit, had a long position in XBTM20 at that time. BitMEX offered high leverage, up to 100 times the price of Bitcoin, on its derivatives at the time, which can amplify both gains and losses significantly.

What is confirmed

Celsius debtors filed a lawsuit against BitMEX on September 12, 2026. BitMEX will close completely on September 23, 2026. Alex Mashinsky is currently serving a 12-year prison sentence for fraud and market manipulation. Mashinsky made public statements on March 13, 2020, claiming Celsius did not trade coins.

What is still unclear

The lawsuit is currently an allegation from Celsius' debtors. It is not yet confirmed by a court that BitMEX acted fraudulently or rigged its liquidation engine. The exact amount of the financial loss from the 2020 incident is not specified in the provided materials, though the claim exceeds $100 million. The exact level of leverage Celsius used on its XBTM20 position was not specified in the debtors' filing.

Why this matters for crypto exchanges

This lawsuit underscores the importance of transparent trading practices and fair liquidation engines in crypto markets. As exchanges like BitMEX wind down operations, pending legal disputes involving customer assets become critical. The contradiction between Mashinsky's 2020 public statements and the 2026 lawsuit filings suggests that internal trading activities at Celsius may have been more complex than presented to the public and regulators at the time.

Sources

• Protos

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