Terra (Luna) co-founder Do Kwon blamed former FTX CEO Sam Bankman-Fried and Genesis Trading for the Terra-LUNA collapse and explained how the crisis came about.
Terra Founder Do Kwon Blames Alameda for Collapse
Do Kwon claims that in April, $1 billion UST was received from the Luna Foundation Guard (LFG), which backs Terra’s stablecoin UST. cryptocurrency Acquired by loan company Genesis. Following this purchased $1 billion UST, the event was triggered by selling in Curve pools on May 8, causing UST to diverge from its $1 fixed price.
Do Kwon claimed that Genesis lent the $1 billion UST purchased to Alameda, and that Alameda and FTX CEO Sam Bankman-Fried was also behind the collapse of UST.
After this development, there was a 5% jump in Terra Classic (LUNC) price and a 15% jump in TerraClassic USD (UST).
The disclosure came as federal prosecutors investigating the FTX crisis and its relationship with Alameda Research launched a market manipulation investigation into whether FTX and Alameda led to the Terra-LUNA crisis.
Do Kwon claims that Genesis Trading bought billions of UST from Luna Foundation Guard (LFG) and transferred them to FTX or Alameda before the USD drop. Kwon stated in his statement:
“I think it’s time Genesis Trading announced whether it provided $1 billion of UST to SBF or Alameda shortly before the collapse – the acquisition from LFG is not to provide supplies for a peg attack, but to participate in Genesis’s “Terra Defi ecosystem” shown to be due to “interest”.
*Not investment advice.
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