Celsius creditors have said that some of the FTX clients may be involved in suspicious trades that led to the manipulation of the price of Celsius token in 2022. The creditors have asked a bankruptcy judge to issue a subpoena to help them investigate this matter.
Ten wallets associated with FTX seem to have undertaken suspicious trades between April and August last year.
Celsius Expects Cooperation from FTX
The subpoena was filed on April 26th. Celsius believes that FTX will cooperate with them to investigate the matter further as to whether the trades from the suspected ten wallets were legitimate or if some manipulative technique such as “wash trading” was used.
According to the officials from Celsius, they took the help of Elementus, a blockchain consultant firm to identify the suspicious transactions. The committee has said that Elementus identified 957 accounts that may be involved in price manipulation as these accounts seem to be linked with suspicious trading ranging from June 12 to July 13 last year when the price of Celsius token was a mere 80 cents.
Officials believe that the information provided by FTX will play a crucial role in investing whether the prices of Celsius tokens were inflated artificially. The court proceedings of Celsius may have a negative impact on its price. Moreover, the committee has requested information on any short position taken on Celsius.
FTX Decides to Sell LedgerX
Recently FTX has decided to sell its derivatives platform LedgerX to an affiliate of Miami International Holdings INC at a price of $50M. This is FTX’s plan to liquidate its assets to repay its stakeholders and customers. The US bankruptcy court will finally give a view on this deal in a hearing that is set to take place on the 4th of May.