Wintermute Accused of Enabling Wash Trading by Celsius Creditors
Creditors of bankrupt cryptocurrency lending platform Celsius Network have alleged that Wintermute, a crypto market maker, assisted Celsius executives in manipulating the price of Celsius (CEL) through improper market trading. The creditors have amended their lawsuit to allege that Celsius executives engaged Wintermute to take part in wash trading, a form of market manipulation that creates the illusion that a particular asset is trading at a higher volume than it actually is. Celsius had no measures in place to prevent improper market-making, and its assets were recently acquired through an auction by crypto consortium Fahrenheit.