Celsius Network Creditors Request Bankruptcy Judge to Investigate Potential CEL Token Market Manipulation

Celsius Network, a cryptocurrency platform that offers high-interest savings accounts and loans, is facing allegations of market manipulation of its CEL token. The creditors of Celsius Network have requested the help of a bankruptcy judge to investigate the matter further. In this article, we will dive deeper into the allegations and investigate the implications of this development on the cryptocurrency market.

What is the Controversy About?

The creditors of Celsius Network are concerned that the price of the CEL token may have been artificially inflated between April and August 2022. They are investigating 10 wallets that were allegedly involved in suspicious trades of the CEL coin during this period. The creditors have employed the services of blockchain consultant Elementus to identify the suspicious transactions.

According to Elementus, 947 transactions involving a near one-to-one relationship of CEL token deposits and withdrawals occurred over three-day periods between 10 private wallets and 10 FTX-operated wallets. The creditors believe that the information from FTX will be crucial in determining whether the trades were intended to inflate the price of CEL token artificially.

The creditors are also seeking information regarding any short positions taken on CEL. They believe that short positions could have had a negative impact on the price of the CEL token. The information obtained from FTX could be essential in resolving disputes related to Celsius’ bankruptcy.