Cryptocurrency lending platform Celsius Network has initiated a legal battle against cryptocurrency exchange FTX, seeking a substantial $2 billion claim. Celsius Network alleges that manipulative trading on FTX’s platform in 2022 resulted in price manipulation of the Celsius CEL token. This move by Celsius Network comes at a time when the company is facing regulatory scrutiny from several authorities, including the US Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and federal prosecutors in Manhattan.
Celsius Network has taken legal action by filing a $2 billion claim against Alameda-operated FTX, a renowned cryptocurrency exchange. The claim argues that specific users on the FTX platform engaged in trades with questionable motives that had a significant impact on the price of the Celsius CEL token throughout 2022. During this period, the CEL token experienced considerable price fluctuations, with the price surging to $8.02 in June 2021 before plummeting to 68 cents by June 2022, following a market crash.
The creditors of Celsius Network, who are seeking fairness and transparency, believe that the alleged manipulative trading activities contributed to the decline of the company. By pursuing this legal action, Celsius Network aims to recover a substantial amount of funds, potentially mitigating the losses incurred by its creditors.
The news of the claim against FTX has generated various reactions within the crypto Twitter community. Some commenters express skepticism, suggesting that the legal proceedings may primarily benefit the attorneys involved.
In addition to the claim against FTX, Celsius Network has also initiated legal proceedings against StakeHound. The lawsuit alleges that StakeHound failed to return approximately $150 million worth of tokens, including 55,000 ether, 50 million MATIC, and 66,000 DOT, to Celsius Network.
Celsius Network, led by CEO Alex Mashinsky, is a crypto lending platform that has faced significant challenges, leading to increased regulatory scrutiny. Investigators at the CFTC have accused the company of regulatory violations preceding its difficulties.
