In 2022, Celsius Network creditors raised concerns about potentially manipulated trades involving the Celsius token (CEL) on the FTX exchange. Represented by a committee, the creditors are now seeking the assistance of a bankruptcy judge to uncover the identities of the users involved in these questionable transactions.
The committee of Celsius Network creditors has asked a bankruptcy judge for permission to issue subpoenas to FTX. They aim to obtain information on users connected to 10 cryptocurrency wallets allegedly involved in dubious CEL trades between April and August.
The committee believes that data from FTX will help establish whether the trades were legitimate or if they involved market manipulation tactics like wash trading. This request for subpoenas was submitted in court documents on April 26.
To detect suspicious transactions, the committee enlisted the expertise of blockchain consultant Elementus.
The filing states:
“Elementus identified 947 transactions involving a nearly one-to-one relationship of CEL Token deposits and withdrawals over three-day periods between ten private wallets and ten FTX-operated wallets.”
The committee emphasizes the importance of the information they seek from FTX. It could be crucial in determining if CEL trades were designed to inflate the token’s price artificially.
Besides investigating suspicious trades, the committee also requests information about any short positions taken on CEL. According to the court filing, these positions could have negatively affected the token’s price. Determining the legitimacy of these trades is vital for resolving disputes related to Celsius Network’s bankruptcy.
In other news, the now-defunct crypto exchange FTX has entered into a purchase agreement with an affiliate of Miami International Holdings. The agreement involves the sale of LedgerX, FTX’s futures and options exchange and clearinghouse, for an estimated $50 million. This deal awaits approval from the United States Bankruptcy Court for the District of Delaware, with a hearing scheduled for May 4.
The outcome of the manipulation probe could have significant implications for resolving the Celsius Network bankruptcy case. With the committee’s pursuit of transparency, the truth behind these potentially manipulative practices may soon come to light.
The post Uncovering the Truth: Were Celsius Token Trades on FTX Manipulated? appeared first on CryptoMode.
Catrina Bodamer, a litigation consultant and Chartered Financial Analyst based in Atlanta, Georgia, explains why…
Arkansas pharmacist Austen Hacker shares how small, consistent interactions build the foundation for patient safety…
Mark Siegwald, a Senior Consultant with Bower Building Consulting in Chicago, separates fact from fiction…
Operations leader and Lean expert Christopher Reep is encouraging manufacturers to make knowledge sharing part…
Breast pathologist Dr. Robert Guarino explains what happens behind the scenes after a biopsy and…
With the event now days away, the globally regulated Forex and multi-asset broker will meet…