Categories: MarketsMenafn

Uncovering the Truth: Were Celsius Token Trades on FTX Manipulated?

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.

Creditors Request Subpoenas for FTX User Information

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.

Blockchain Consultant Elementus Identifies Suspicious Transactions

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.

FTX’s Purchase Agreement with Miami International Holdings Affiliate

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.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

EcoWatt Launches EWX Token Pre-Sale and Share Sale to Power Global Climate Action

Dubai, UAE, 6th June 2025, ZEX PR WIRE, EcoWatt, a pioneering force in climate-positive Web3 innovation,…

11 hours ago

StealthEX Now Offers 2,000+ Cryptocurrencies for Instant Exchange

StealthEX has achieved a groundbreaking milestone in its mission to democratize crypto exchanges: the platform…

2 days ago

StealthEX Now Offers 2,000+ Cryptocurrencies for Instant Exchange

StealthEX has achieved a groundbreaking milestone in its mission to democratize crypto exchanges: the platform…

2 days ago

How Decodo Helps to Scale Data Collection for AI Agents

Vilnius, Lithuania, 4th June 2025, ZEX PR WIRE, Decodo, a leading platform for testing, launching,…

2 days ago

A New Blueprint for DeFi: How AKAS DAO Challenges the Status Quo

Denmark, Europe, 4th June 2025, ZEX PR WIRE, Decentralized Finance (DeFi) was once seen as…

2 days ago

SALUTS Unveils Robot-Defined Operations at Web Summit Qatar: Pioneering Future AI Autonomy In-Space and On-Earth

Munich, Germany, 3rd June 2025, ZEX PR WIRE, SALUTS (formerly Salutes Space) a leader in…

4 days ago