Celsius Tracing 10 FTX Wallets That Manipulated CEL Prices Last Year
- Celsius creditors have asked the bankruptcy judge to authorize subpoenas with FTX to identify 10 wallets that manipulated the CEL price last year.
- Creditors of the bankrupt lending platform said it was necessary to identify FTX users to determine if the transaction in question was legitimate.
- Creditors want to determine the value of the CEL native token because it is so important in the bankruptcy controversy.
According to Bloomberg News, Celsius Network LLC’s creditor committee asked a bankruptcy judge on Wednesday to authorize an FTX subpoena for information to identify users behind ten crypto wallets it gave away related to the activity between April and August of last year suspicious transaction patterns of CEL tokens.
“The Subpoenas request information on the identities and user accounts of the entities or individuals associated with the Identified FTX Wallets associated with all short positions with respect to CEL Tokens on the FTX Exchange from April 1, 2022, to August 30, 2022.”Court filing by Celsius Creditors Committee.
According to court documents filed Wednesday, Celsius’s committee of creditors said it needed FTX user information to determine if the transaction was legitimate, saying it was “an act of market manipulation, such as fake trading.”
The commission said blockchain consultant Elementus Inc. that they hired identified 947 suspicious transactions that occurred between June 12 and July 13 last year, when the token was priced at 81 cents.
Determining the legitimacy of those transactions could be crucial in the Celsius bankruptcy controversy. The transactions provide significant value to Celsius’s bankruptcy because some transactions are made between the date on which the platform’s withdrawals were halted and the date on which the lender filed for Chapter 11 bankruptcy.
The firm claimed that the lending platform’s pricing of 81 cents at the time of bankruptcy did not fairly reflect the value when it valued the CEL token at 20 cents in its proposed Chapter 11 plan fair token market. The value of CEL has been contested by creditors, who have pointed to shady activities that might have affected the token’s price.
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