Breaking: Celsius Network Files $2 Billion Claim Against FTX
Celsius Network, a decentralized community-based social network, has filed a $2 billion claim against FTX (Alameda) following allegations of suspicious trading activities that may have manipulated the price of the Celsius CEL token in 2022. The move comes as Celsius Network faces 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.
Celsius $2 Billion Claim Against FTX
In a recent development, Celsius Network filed a substantial $2 billion claim against FTX, an influential cryptocurrency exchange operated by Alameda. The claim alleges that certain FTX users engaged in suspicious trades that had a significant impact on the price of the Celsius CEL token in 2022. CEL rose from its ICO price of 30 cents to $8.02 in June 2021. After the market crashed the following year, CEL had fallen to 68 cents by June 2022.
The creditors of Celsius Network, seeking justice and transparency, believe that these manipulative trading activities played a 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.
Some members of the crypto Twitter community responded sarcastically to the news, with one commenter suggesting that the only money Celsius creditors might see from the claim would be attorney bills.
What’s Next 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.
This 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.
CoinGape reported that the it has got a green light to liquidate its altcoin holdings for crypto majors, Bitcoin (BTC) and Ethereum (ETH), as part of its restructuring plan.
Also Read: Final Judgment Issued in US SEC v. LBRY Case, Implications For XRP Lawsuit And Coinbase
- Experts Say Bitcoin CME Gap Brings Short Term Uncertainty Before Uptober Rally Begins
- MrBeast Expands Holdings in ASTER Token as Revenue Outpaces Hyperliquid by 10x
- Why Is Canary Litecoin ETF Approval by US SEC This Week Crucial for Crypto Market?
- LBank Signs Sponsorship Deal with Argentine National Team, Launches $100M Bonus
- ASTER Leads Perp DEX Volumes Despite $4.8M Wintermute Transfers
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
- Solana Price Set for Recovery Amid Wyckoff Accumulation and Canary Capital ETF Filing
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
