Celsius Network Initiates Legal Battle: Seeks $2 Billion in Claim Against FTX

Cryptocurrency lending platform Celsius Network has recently made a significant move by filing a $2 billion claim against FTX, a renowned cryptocurrency exchange operated by Alameda. The claim alleges that certain users on the FTX platform engaged in trades with questionable motives, manipulating the price of the Celsius CEL token throughout 2022.

This legal action comes at a challenging time for Celsius Network, as it faces regulatory scrutiny from various authorities, including the US Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and federal prosecutors in Manhattan.

Questionable Trading Activities: What’s Wrong?

The claim filed by Celsius Network contends that suspicious trading activities on the FTX platform had a noticeable impact on the price of the Celsius CEL token during 2022. The CEL token experienced significant price fluctuations, reaching a high of $8.02 in June 2021, only to plummet to 68 cents by June 2022 following a market crash.

Celsius Network’s creditors, who are seeking fairness and transparency, believe that the alleged manipulative trading activities played a role in the decline of the company. By taking legal action, Celsius Network aims to recover a substantial amount of funds, potentially mitigating the losses suffered by its creditors.

But that’s not all…

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.

Crypto Community Reacts

The news of Celsius Network’s claim against FTX has sparked diverse reactions within the crypto Twitter community. Some commenters have expressed skepticism, suggesting that the legal proceedings may primarily benefit the involved attorneys. This case has garnered attention and interest from crypto enthusiasts who are closely watching its developments.

Read More: Taylor Swift’s $100M FTX Deal Dashed by Sam Bankman-Fried, Leaving Her ‘Frustrated’

Investigators at the CFTC have accused Celsius Network, led by CEO Alex Mashinsky, of regulatory violations that preceded its current difficulties. The ongoing legal actions against FTX and StakeHound represent a crucial step for Celsius Network in addressing these challenges and seeking restitution.

Source Article