Wintermute Accused of Facilitating Ex-Celsius Network CEO's 'Wash Trading' and Other Improper Activities

Market maker Wintermute is accused of helping the former CEO of bankrupt crypto lending firm Celsius Network, Alex Mashinsky, defraud investors in a proposed class action, according to Bloomberg. Beginning in March 2021, Wintermute engaged in "wash trading" and other improper activities to inflate the value of Celsius' native token, CEL, and loan products, according to the lawsuit. Mashinsky tried to shore up CEL after the collapse of Terra and Luna tokens in May 2022, but Wintermute also played a key role, investors said. However, a spokesperson for Wintermute said "Wintermute vehemently denies any involvement in any inappropriate transactions."