Celsius Network, a decentralized community-based social network, has recently made headlines by filing a $2 billion claim against FTX (Alameda).
Celsius Network files 2 billion $ claim against FTX: A Deep Dive
This claim comes in the wake of allegations of suspicious trading activities that may have manipulated the price of the Celsius CEL token in 2022. The move comes at a time when Celsius Network is under scrutiny from various regulatory authorities, including the U.S. Commodities and Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and federal prosecutors in Manhattan.
Unraveling the $2 Billion Claim
Celsius Network’s claim against FTX is substantial. The claim alleges that certain FTX users engaged in suspicious trades that significantly impacted the price of the Celsius CEL token in 2022. CEL rose from its ICO price of 30 cents to $8.02 in June 2021. However, after the market crashed the following year, CEL had fallen to 68 cents by June 2022.
The creditors of Celsius Network, who are seeking justice and transparency, believe that these manipulative trading activities played a significant role in the downfall of the company. By pursuing this legal action, Celsius Network aims to recover a substantial amount of funds, potentially mitigating the losses suffered by its creditors.
The Road Ahead for Celsius Network
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 to Celsius. The tokens in question include 55,000 ether, 50 million MATIC, and 66,000 DOT.
Celsius Network, a crypto lending platform founded by CEO Alex Mashinsky, experienced a major blow-up last year, leading to increased regulatory scrutiny. The company has been accused of breaking regulatory rules prior to its implosion, according to investigators at the CFTC.
As part of its restructuring plan, Celsius Network has received the green light to liquidate its altcoin holdings for crypto majors, Bitcoin (BTC) and Ethereum (ETH). This move is expected to help the company recover from its current situation and potentially pave the way for a more stable future.
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