• Celsius investors claim assistance of market maker in Wash Trading,
• Wintermute rejects claims of involvement in improper trading.

The bankrupt cryptocurrency lending platform has leveled allegations against Wintermute, a prominent crypto market maker. Claiming that they actively participated in price manipulation of CEL tokens by facilitating “wash trading” in collaboration with Celsius executives.

The latest development in the legal proceedings showcases, Celsius creditors amending their lawsuit in the United States District Court of New Jersey. Alleging that Wintermute employed by Celsius executives to engage in improper market trading practices.

Wintermute is alleged to have played a purported role in aiding Celsius Network’s CEO, Alex Mashinsky, and other executives in unlawfully manipulating and profiting from unregistered CEL Tokens. These allegations specifically revolve around the practice of illegal wash trading. Reports indicate that the creditors leveled accusations against both Celsius executives and Wintermute, alleging that they acted with “scienter.” This term implies that they possessed knowledge and intent regarding the alleged manipulative acts.

The accusations claim that Celsius executives allegedly engaged Wintermute in the activities of “improper market making” for an extended period. Wintermute’s alleged involvement is said to have commenced in March 2021 and persisted until June 2022, aligning with Celsius’s freezing of withdrawals. These claims suggest a sustained period of collaboration between Wintermute and Celsius during a critical phase of the platform’s operations.

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