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Celsius Network Requests Subpoena of FTX in Alleged Crypto Trading Scandal

Creditors of Celsius Network LLC are seeking the assistance of a bankruptcy judge

Creditors of Celsius Network LLC are seeking the assistance of a bankruptcy judge to uncover the identities of FTX users involved in “questionable cryptocurrency transactions” that may have impacted the value of Celsius’ proprietary token.

In a recent court filing, the creditors requested subpoenas to obtain information on 10 cryptocurrency wallets associated with suspicious trades of Celsius’ CEL coin.

These trades were executed when the platform halted withdrawals and before filing for Chapter 11 bankruptcy. The creditors believe that obtaining information on the users involved in the trades is crucial to investigating if they manipulated the price of CEL, causing losses for Celsius Network.

Blockchain consultant Elementus identified 947 transactions involving a nearly one-to-one relationship of CEL Token deposits and withdrawals between ten private wallets and ten FTX-operated wallets over three days.

The committee representing Celsius Network’s creditors is also seeking details on any short positions taken on CEL, which may have affected its price negatively.

This information is necessary to determine the legitimacy of the trades and could aid in resolving a dispute related to Celsius Network’s bankruptcy.

The current bankruptcy plan values CEL at 20 cents on the petition date, but the creditors have disputed this value, citing suspicious trades that may have artificially manipulated the token’s price.


Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.