Terraform Labs Accuses Citadel Securities of De-Pegging TerraUSD (UST)
Terraform Labs has leveled serious allegations against Ken Griffin, the head of Citadel Securities, suggesting their potential involvement in de-pegging TerraUSD (UST). To support their defense in a lawsuit by the U.S. Securities and Exchange Commission (SEC), Terraform Labs initiated legal action in a Florida court on October 10. They are seeking key trading data from Citadel Securities related to UST’s drop in value in May 2022. However, Citadel has only shared one document and refused to provide the rest.
Allegations Point to Ken Griffin’s Involvement
Terraform Labs also presents publicly available evidence that Ken Griffin, believed to be the mastermind behind Citadel Securities, may have attempted to bet against UST during its decline. This information is based on discussions on platforms like Discord and data from blockchain research firm Nansen, which tracks the attack on UST by well-funded traders. Terraform Labs alleges that these third-party market participants intentionally destabilized the market to cause UST’s price to drop from one dollar.
Citadel’s Response Under Scrutiny
Citadel had previously denied any involvement in stablecoin trading and stated that they do not deal with stablecoins like UST. They made this statement publicly in May 2022. The Southern District of Florida has not yet responded to Terraform Labs’ filing on October 10. Terraform is also requesting documents from bankrupt crypto exchange FTX as part of their defense against a lawsuit by the SEC, which accuses them of orchestrating a multi-billion dollar crypto fraud.
Hot Take: Terraform Labs Raises Serious Concerns About Ken Griffin and Citadel Securities’ Role in De-Pegging UST
Terraform Labs’ accusations against Ken Griffin and Citadel Securities regarding the de-pegging of TerraUSD raise significant concerns about market manipulation. The alleged attempt to bet against UST during its decline, as well as the refusal to provide crucial trading data, further deepens suspicions. As the legal battle unfolds, all eyes will be on Citadel’s response and the outcome of Terraform Labs’ request for key documents. This case has the potential to have far-reaching implications for the stability and integrity of the crypto market.
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