Celsius is preparing to take FTX to court to reveal the names of 10 large wallet holders suspected of manipulating the CEL price.
- Celsius creditors want to subpoena FTX records regarding large wallet holders.
- FTX debtors ignored previous requests.
- The dispute could resolve long-standing uncertainty about the companies’ relationship.
Celsius is preparing to take FTX to court to reveal the names of 10 large wallet holders suspected of manipulating the CEL price.
Creditors want to expose wallet holders allegedly involved in suspicious transactions that manipulated the CEL price shortly after Celsius stopped withdrawals.
Creditors Suspect CEL Token is Overvalued
After detecting 950 CEL transfers resembling washing between their own custody wallets and FTX wallets, creditors are seeking clarity on the legitimacy of the transactions.
The transfers allegedly occurred between April and August last year. Celsius seeks a court order to know whether these traders were involved in CEL price manipulation and caused the CEL token to be overvalued at 81 cents.
Crypto wash traders manipulate the price of a token by buying and selling it through multiple accounts or exchanges. These transfers inflate the token’s trading activity and distort its true value.
Celsius creditors also want information about short positions on CEL that could affect the token’s price. The token is currently worth 21 cents and is part of Celsius’ Chapter 11 bankruptcy plan.