Celsius creditors demand transparency on ‘suspicious’ FTX transactions

Celsius creditors allege that some FTX users were involved in suspicious transactions that may have manipulated the price of the Celsius (CEL) token in 2022. Creditors are seeking help from a bankruptcy judge to identify the users in question.

Represented by the Commission, the creditors of the Celsius Network are: I was demanded to We have received permission from a bankruptcy judge to issue a subpoena to FTX seeking information regarding users associated with 10 cryptocurrency wallets that were allegedly involved in suspicious trading of Celsius CEL coins between April and August. .

Creditors believe that information from FTX will help them determine whether a transaction was legitimate or constituted market manipulation such as a wash transaction. The subpoena request was made in court documents filed on April 26.

The commission said it enlisted the help of blockchain consultant Elementus to identify suspicious transactions. Filing wrote:

“Elementus identified 947 transactions across 10 private wallets and 10 FTX-operated wallets with a near 1:1 relationship between deposits and withdrawals of CEL tokens over the three-day period.”

A panel representing Celsius Network creditors said the information they were seeking from FTX was important in determining whether a deal involving CEL was intended to artificially inflate its price. It says there is

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Additionally, the Commission is requesting information on short positions taken in CEL. According to court filings, this may have had a negative impact on prices as well. Creditors consider it important to determine whether the transaction was lawful.

Meanwhile, failed cryptocurrency exchange FTX has entered into a purchase agreement with affiliates of Miami International Holdings to sell its futures and options exchange and clearinghouse, LedgerX, for around $50 million. The transaction is pending approval by the United States Bankruptcy Court for the District of Delaware, with a hearing scheduled for May 4.

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