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

The post Celsius Network Initiates Legal Battle: Seeks $2 Billion in Claim Against FTX appeared first on Coinpedia Fintech News

Celsius Network has recently filed a substantial $2 billion claim against FTX (Alameda). The claim alleges that suspicious trading activities on FTX’s platform manipulated the price of the Celsius CEL token in 2022. This move comes as Celsius Network faces regulatory scrutiny from multiple authorities, including the US CFTC, the SEC, and federal prosecutors in Manhattan.

Celsius Network’s Legal Action Against FTX

Celsius Network has taken legal action by filing a $2 billion claim against FTX, a renowned cryptocurrency exchange operated by Alameda. The claim contends that certain users on the FTX platform engaged in trades with questionable motives that had a notable impact on the price of the Celsius CEL token during 2022. The CEL token experienced substantial price fluctuations, surging to $8.02 in June 2021 before plummeting to 68 cents by June 2022 following a market crash.

Celsius Network’s creditors, who seek fairness and transparency, believe that these alleged manipulative trading activities contributed to the company’s decline. By pursuing this legal action, Celsius Network aims to recoup a significant amount of funds, potentially mitigating the losses incurred by its creditors.

The news of the claim against FTX sparked various reactions within the crypto Twitter community, with some commenters expressing skepticism and suggesting that the legal proceedings may primarily benefit the involved attorneys.

Apart from 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 faced significant challenges leading to increased regulatory scrutiny. Investigators at the CFTC have accused the company of regulatory violations preceding its difficulties.