Wintermute, a prominent crypto market maker, has found itself embroiled in a legal controversy as creditors of the bankrupt cryptocurrency lending platform, Celsius, have made serious allegations against both entities. 

According to a recent court filing mentioned in a Bloomberg report, Celsius creditors have amended their lawsuit in the United States District Court of New Jersey, claiming that Wintermute colluded with Celsius executives in manipulating the price of CEL, the platform’s native cryptocurrency, through illicit market trading practices. 

These allegations have added another layer of complexity to the ongoing legal battle surrounding Celsius and its downfall.

Creditors Add Wintermute To Celsius Lawsuit

According to the report, the creditors claim that Wintermute collaborated with Celsius Network’s CEO, Alex Mashinsky, and other executives in engaging in illegal wash trading activities involving unregistered CEL Tokens.

Wash trading, a manipulative tactic, creates a false appearance of high trading volume for a particular asset, deceiving market participants. The creditors claim that Wintermute’s alleged involvement in such practices was part of a concerted effort by Celsius executives to unlawfully manipulate the market and profit from it. 

Their lawsuit further contends that both the Celsius executives and Wintermute acted with “scienter,” meaning they knowingly and intentionally engaged in the manipulative acts that are being alleged.

The alleged scheme reportedly came to light through “publicly available internal conversations” among Celsius executives, according to the court filing. These conversations apparently provide evidence supporting the creditors’ claims of collusion and intentional manipulation by the involved parties.

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Author: Christian Encila

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