- The prosecution amended the lawsuit against the company’s top management
- The authors of the suit claim that Mashinsky and other members of management used Wintermute to artificially boost CEL
- This misled investors about the financial stability of Celsius
Celsius creditors filed suit against ex-CEO Alex Mashinsky and other members of top management last July. On June 23, it was amended to add Wintermute as a defendant. The suit alleges that former Celsius management used it to manipulate the market.
“This company and other defendants participated in a scheme that artificially inflated the trading volume of CEL tokens sold by Celsius,” the suit says.
This in turn misled investors about the company’s financial stability.. The scheme was uncovered through “publicly available internal records,” though the document does not directly attach the evidence itself.
The suit says Wintermute operated the practice from March 2021 until the platform closed in the summer of 2022.. There were simply no measures to control and counteract such activity on the Celsius platform.
Alex Maszynski’s lawyer declined to comment on the change in the lawsuit.. Although his client had previously denied the fraud charges. As for Wintermute, they ignored media requests to clarify the situation.. It was won by the Fahrenheit consortium. The new management of the platform is in favor of its reorganization and return to the market.