BRIC Sues BitMEX for $485 Million in Bitcoin Liquidation Case
- Blockchain Recovery Investment Consortium (BRIC) has filed a lawsuit against five BitMEX entities to recover approximately $485 million, equivalent to 6,360 BTC, for former Celsius customers.
- The lawsuit alleges that BitMEX’s liquidation process exacerbated the March 2020 Bitcoin crash, where prices fell by about 50%.
- Claims include accusations of “God Access” and insider trading, suggesting BitMEX’s trading team had unfair advantages over ordinary users.
- During the market turmoil on March 12–13, BitMEX allegedly used its platform design to profit from forced liquidations.
- The lawsuit also claims that collateral from liquidated positions was transferred to BitMEX’s Insurance Fund, which reportedly increased by over four thousand BTC during the crash period.
BRIC’s lawsuit against BitMEX highlights significant allegations of market manipulation and insider trading practices during a critical period in March 2020 when Bitcoin prices plummeted dramatically. The case seeks restitution for substantial losses incurred by Celsius customers due to alleged unfair trading practices on the exchange platform.
This legal action underscores ongoing concerns about transparency and fairness in cryptocurrency exchanges’ operations during volatile market conditions. (Source)
