Celsius creditors believe that some FTX users may have artificially inflated CEL price.
Celsius Network's creditors allege possible market manipulation of Celsius tokens in 2022 involving FTX users and are petitioning a bankruptcy judge to uncover the truth.
On April 26th, the Celsius Network creditors committee asked a bankruptcy judge to allow them to issue subpoenas to FTX.
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With a subpoena, Celsius creditors want to receive information about users tied to ten crypto wallets suspected of engaging in shady Celsius' (CEL) coin trades conducted from April to August 2022.
In particular, the creditors aim to establish whether the trades were legitimate or involved market manipulation.
Based on the filing, the committee collaborated with the blockchain consultant Elementus to pinpoint any suspicious transactions. In the filing, the committee stated:
Elementus identified 947 transactions involving a near one-to-one relationship of CEL Token deposits and withdrawals over three-day periods between ten private wallets and ten FTX-operated wallets.
The information that the committee seeks from FTX is essential to ascertain if the CEL trades were intended to artificially inflate the token's price. Additionally, the committee is looking for data on any short positions taken on CEL, which could have negatively impacted its price.
It is worth noting that the legitimacy of the trades is crucial to resolving a dispute linked to Celsius' bankruptcy.
In other news, the now-bankrupt crypto exchange FTX has agreed to sell LedgerX to an affiliate of Miami International Holdings for roughly $50 million. Before moving forward, the United States Bankruptcy Court for the District of Delaware must approve the deal, with a hearing set for May 4th.
Market manipulation allegations surrounding Celsius tokens highlight the importance of transparency in the cryptocurrency industry.
At the time of writing, Celsius (CEL) retails for $0.2882, recording a 0.09% decrease in the last 24 hours.
