Celsius investors claimed that the market maker was backed by “wash trading”.
One of the largest cryptocurrency market makers, Wintermute Trading Ltd. , former Celsius Network Ltd. He was accused of helping Chief Executive Alex Mashinsky deceive investors in the now-bankrupt crypto lending firm.
Claim from Celsius Investors to Market Maker
The lawsuit against Alex Mashinsky, ex-CEO of Celsius Network, Wintermute Trading Ltd. including reorganized. In addition to Mashinsky, who has been accused of deceiving investors at Celsius’ bankrupt crypto lending firm, Wintermute has also been added as a defendant.
Plaintiffs filing in July 2022 amended their federal lawsuit in New Jersey to include Wintermute as a London-based company. According to the lawsuit, Wintermute contributed to Celsius’s downfall through practices known as “wash trading” that create the illusion that an asset is being traded more often than it actually is. It has also engaged in other inappropriate activities to inflate the value of Celsius’ native CEL tokens and loan products from March 2021. According to investors’ claim, Wintermute has made an effort to support CEL following the collapse of the Terra and Luna tokens.
According to the lawsuit, Wintermute’s impulse trading manipulated CEL token prices and trading volume in a strategic pattern to mislead them. Celsius froze all accounts in June 2022 and filed for bankruptcy a month later. These events led to a great collapse in the sector and caused many investors to experience huge losses.
