The estate representing Celsius has initiated legal proceedings against BitMEX, seeking 495 million dollars. This lawsuit centers on the recovery of 6,360 Bitcoin that were reportedly lost due to liquidations during the 2020 Covid crash. This substantial sum and digital asset quantity are at the heart of the current legal dispute between the two entities, stemming from events several years prior.
The lost Bitcoin originated from a leveraged long position, a trading strategy now creating an awkward situation for Celsius. This specific type of market exposure stands in stark contrast to the lender's widely promoted delta neutral marketing, which implies a balanced and hedged risk approach. The estate's action highlights the discrepancy between Celsius's publicized operational methods and the trading practices that led to the significant loss during the market downturn.