{"id":173443,"date":"2023-10-13T12:12:35","date_gmt":"2023-10-13T06:42:35","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=173443"},"modified":"2023-10-13T12:12:35","modified_gmt":"2023-10-13T06:42:35","slug":"terraforms-new-filing-states-who-was-behind-the-ust-de-peg-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/terraforms-new-filing-states-who-was-behind-the-ust-de-peg-crypto-news\/","title":{"rendered":"Terraform’s New Filing States who Was Behind the UST De-Peg – Crypto News"},"content":{"rendered":"

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Last year in mid-2022, the Terra (LUNA) ecosystem faced a brutal collapse eroding $40 billion of investors\u2019 money. In an interesting revelation, Terraform Labs said that the massive de-peg of its UST stablecoin wasn\u2019t an algorithmic failure. Instead, it blames Citadel Securities for its role in a \u201cconcerted, intentional effort\u201d to cause the depreciation of the stablecoin<\/a>.<\/p>\n

Terraform Labs Blames Citadel Securities<\/h3>\n

Earlier this week on October 10, Terraform Labs filed a motion in the U.S. District Court for the Southern District of Florida. The motion seeks to compel Citadel Securities to produce documents relating to its trading actions in May 2022.<\/p>\n

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Terraform claims that the detachment of its stablecoin from its peg in May 2022, resulting in a drop from $1 to $0.02, was a deliberate act by \u201ccertain third-party market participants\u201d who engaged in short-selling the stablecoin, rather than stemming from algorithmic instability. The company\u2019s motion asserts that the market disruption was not due to any instability within the UST stablecoin\u2019s underlying algorithm. The filing notes:<\/p>\n

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\u201cInstead, Movant contends that the market was destabilized due to the concerted, intentional effort of certain third party market participants to \u201cshort\u201d and cause UST to depeg from its one dollar price.\u201d<\/p>\n<\/blockquote>\n

Citadel Securities Was Shorting USDT<\/h3>\n

<\/p>\n

Furthermore, the motion references \u201cpublicly available evidence\u201d that suggests Citadel CEO Ken Griffin had intentions to short the stablecoin during the period of the de-peg in May 2022.<\/p>\n

<\/p>\n

The filing from Terraform includes a screenshot from a chat within a Discord channel where a trader, operating under a pseudonym, claimed to have had a conversation with Griffin. According to the chat, Griffin allegedly mentioned, \u201cThey were going to Soros the f*** out of Luna UST,\u201d presumably alluding to the trading strategies of George Soros, which involve heavily leveraged one-directional bets.<\/p>\n

However, Citadel Securities had previously denied trading the UST stablecoin in May 2022. Some reports also suggested that Terra\u2019s disgraced founder Do Kwon knew about the stablecoin collapse<\/a> beforehand. The Southern District of Florida has not yet issued a response to the submission made on October 10th.<\/p>\n

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\u2713 Share:<\/p>\n

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills. <\/p>\n<\/p><\/div>\n

\n \"\"\"\" <\/div>\n<\/p><\/div>\n<\/p><\/div>\n
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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–><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Last year in mid-2022, the Terra (LUNA) ecosystem faced a brutal collapse eroding $40 billion of investors\u2019 money. In an interesting revelation, Terraform Labs said that the massive de-peg of its UST stablecoin wasn\u2019t an algorithmic failure. Instead, it blames Citadel Securities for its role in a \u201cconcerted, intentional effort\u201d to cause the depreciation of […]<\/p>\n","protected":false},"author":2,"featured_media":173444,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-173443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=173443"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173443\/revisions"}],"predecessor-version":[{"id":173450,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/173443\/revisions\/173450"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/173444"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=173443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=173443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=173443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}