Celsius Creditors Claim Some FTX Users Engaged in Shady Transactions That Could Manipulate Celsius Prices, Tokens of 2022. Creditors are seeking the help of a bankruptcy judge to uncover the identities of the users in question.
Creditors of Celsius Network, represented by a committee, have asked the bankruptcy judge to allow subpoenas to be issued against FTX. They are looking for information on users associated with 10 cryptocurrency wallets that were allegedly involved in suspicious transaction ions of Celsius' CEL token between April and August. Creditors argued that information from FTX would help them determine whether the transactions were legal or constituted market manipulation, such as wash trading. The subpoena request was filed in court documents filed April 26.
According to the commission, it hired the help of blockchain consultant Elementus to identify suspicious transactions. The document reads: “Elementus identified 947 transactions involving near-one-to-one relationships between ten private wallets and ten FTX-operated w allets for deposits and withdrawals of CEL tokens over a three-day period.”
The committee representing Celsius Network creditors said the information they sought from FTX was critical to determining whether transactions involving CEL were designed to artificially inflate its price. In addition, the Committee requested information on short positions in CEL. It could al so have a negative impact on its price, according to court documents. Creditors argue that determining the legality of the deal is important as it is crucial to resolving disputes related to Celsius' bankruptcy.
Meanwhile, defunct cryptocurrency exchange FTX has entered into a purchase agreement with an affiliate of Miami International Holdings to sell LedgerX, its futures and options exchange and clearing house for about $50 million. The deal is awaiting approval from the US Ban kruptcy Court in Delaware, with a hearing scheduled for May 4.
