Terraform Labs claimed that third-party market makers were behind the collapse of TerraUSD (UST).
Terraform Labs, founded by controversial name Do Kwon, on October 10 in his application to the U.S. District Court for the Southern District of Florida. Terra USD behind your collapse $62 billion fund giant market maker Citadel Securities He claimed that it was. Terraform Labs front, Citadel Securities to purchases and sales documents regarding transparent And detailed He requested that he share it somehow.
Terraform Labs stated that these documents submitted to the court were filed by the US Securities and Exchange Commission (SEC) last February. To Do Kwon He argued that he was closely interested in the case filed.
UST, which lost its dollar stability in May 2022, From $1 to $0.02 There was a sudden decline and this event deeply shook the cryptocurrency industry. This decline in those days was due to the irresponsible attitude of Do Kwon and his team and TOP It was attributed to the instability of the algorithm. However, Terraform Labs claimed that this was not the case and that third parties, including market maker Citadel Securities, were involved:
As Terraform, we claim that the market instability that occurs is not due to instability in the algorithm behind the UST. Instead, we argue that the market was destabilized due to the concerted and intentional efforts of some third-party market participants to cause the UST to fall in one dollar price.
On the other hand, Ken, the president of Citadel Entities, was on this parity during and before the UST collapse. short directional position The Terraform front, which claimed that it had given signals that it would buy it, argued that there was clear evidence:
There is public evidence to suggest that Ken Griffin, the head of Citadel Entities, intends to shor the UST during or around the May 2022 depeg.
Terraform, made by an anonymous trader via Discord “Griffin will take a serious short position” He also added the screenshot containing his statements to the court file.
Citadel Securities touched on this issue in the past period and denied the allegations that it was buying and selling UST. At this point, the court will have to decide whether Citadel Securities should disclose its trading transactions.
If the court deems it appropriate not to disclose the documents, Terraform Rakoff He requested that the case be transferred to the U.S. District Court for the Southern District of New York for decision.
Big Claim from Terra: 62 Billion Financial Giant Collapsed LUNA! The article titled was prepared by Tugay Erdem and published on koinbulteni.com.