Celsius Creditors Want To Subpoena FTX Over Suspicious CEL Trades
- Celsius’ creditors are seeking a judge’s help to get info on FTX users involved in a series of suspicious trades.
- The Unsecured Creditors Committee believes that the trades manipulated the price of the CEL token.
- The creditors want to subpoena FTX to demand information related to the users behind the wallets that executed the suspicious trades.
The Celsius Official Committee of Unsecured Creditors is seeking the help of a New York bankruptcy judge to get information related to a series of suspicious trades made by FTX users last year. The creditors believe that the trades manipulated the price of the bankrupt crypto lender’s native token CEL.
Celsius Creditors Want Info On FTX Users
According to a report by Bloomberg, the latest bankruptcy hearing of Celsius saw its creditor committee enter an application in the U.S. Bankruptcy Court for the Southern District of New York, seeking permission to issue subpoenas to FTX, the Bahamas-based crypto exchange which collapsed in November last year. As per the court filing, the subpoenas are to get information about the FTX users who made suspicious trades last year.
The defunct lender’s creditors stated in court that ten crypto wallets belonging to said FTX users executed a series of suspicious CEL trades between April and August last year, which led to a considerable fluctuation in the token’s price. The trades carry significant value for Celsius’ bankruptcy case because some of them were made between the date on which the platform’s withdrawals were paused and the date when the lender filed for Chapter 11 bankruptcy.
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.”
The trades bring under question the fair market value of the CEL token on bankruptcy day. The current bankruptcy plan by the company valued CEL at 20 cents on the petition date. The creditors have disputed the value of CEL, citing the suspicious trades that may have manipulated the token’s price.
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