Celsius Network has also filed a lawsuit against StakeHound.

By June of 2022, after the market meltdown of that year, CEL had dropped to 68 cents.

A $2 billion lawsuit has been brought against FTX’s sister firm Alameda Research by Celsius Network on claims of suspicious trading activity that may have affected the price of the Celsius CEL token in 2022. Regulatory agencies such as the U.S. CFTC, the U.S. SEC, and federal prosecutors in Manhattan have been looking into Celsius Network, so the action is timely.

Recently, Celsius Network made headlines when it launched a massive $2 billion lawsuit against FTX’s sister firm Alameda Research. The lawsuit states that in 2022, the price of the Celsius CEL token was significantly impacted by questionable transactions made by specific FTX users. In June of 2021, the price of CEL had risen to $8.02, from its ICO price of 30 cents. By June of 2022, after the market meltdown of that year, CEL had dropped to 68 cents.

Minimizing Creditor Base Damage

Creditors of Celsius Network, who are looking for fairness and clarity, think that the company’s demise may be traced back to fraudulent trading practices. By taking legal action, Celsius Network hopes to recoup significant money and reduce the damage to its creditor base.

Celsius Network has also filed a lawsuit against StakeHound in addition to the claim against FTX. According to the complaint, Celsius lost almost $150 million because StakeHound had failed to return the tokens. 55,000 ether, 50M MATIC, and 66,000 DOT are the tokens in dispute.

CEO Alex Mashinsky’s crypto lending business had a significant disaster late last year, drawing the attention of regulators. Before its collapse, the business allegedly broke regulations, according to CFTC investigators.

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Filed under: Bitcoin - @ July 13, 2023 11:26 am