BitMEX is facing a lawsuit from the Celsius estate, which claims the exchange wrongfully liquidated positions and seized 6,360 BTC—worth almost $490 million—during the wild market crash in March 2020. The legal move comes just as BitMEX is gearing up to shut down operations.

What Happened

According to Celsius estate reps, BitMEX triggered liquidations at the peak of March 2020's volatility, resulting in the loss of 6,360 BTC. They’re calling these actions illegitimate, putting the disputed assets’ value at nearly $490 million.

The Core Allegations

The Celsius estate is challenging whether BitMEX had the right to liquidate and seize the bitcoin in question. At the heart of the dispute: did BitMEX actually follow its own liquidation rules and procedures during those extreme market conditions?

Context

This all ties back to the chaos of the March 2020 crash and comes as BitMEX is preparing to wind down. The outcome could set a precedent for how liquidations are handled by exchanges when the market goes haywire, especially for big institutional players.