Cryptocurrency

Who Initiated UST Depeg and $40 Billion LUNC Collapse Revealed

In a shocking turn of events, the collapse of the Terra ecosystem has taken a fresh twist as Terraform Labs blames Citadel Securities for the depegging of its UST stablecoin.

Terraform Labs has filed a motion with the U.S. District Court for the Southern District of Florida, alleging that Citadel Securities launched a calculated and deliberate campaign to short-sell UST, resulting in its detachment from its dollar-pegged value.

The motion puts forth a compelling piece of evidence such as a screenshot from a Discord chat. The screenshot features an individual trading under an alias claiming to have had a conversation with Citadel CEO Ken Griffin, where they discussed plans to short the UST stablecoin.

Read Also: Terra Classic (LUNC) TVL Hits All-Time Low, Raising Concerns Over Its Survival

Griffin allegedly said, “They were going to Soros the f*** out of Luna UST,” a nod to the notorious trading strategies employed by George Soros, involving highly leveraged one-way bets.

Citadel Securities, for its part, had previously denied any involvement in trading UST back in May 2022. However, Terraform Labs argues that the evidence presented strongly suggests the company’s complicity in the de-pegging scandal.

This motion is an integral part of the ongoing lawsuit between Terraform Labs and its co-founder, Do Kwon, who faces accusations of fraud and negligence in relation to the Terra ecosystem’s downfall.

Should Terraform Labs manage to substantiate its allegations against Citadel Securities, it could have far-reaching implications for the lawsuit. Moreover, it would inevitably raise crucial questions about the role and conduct of major financial institutions within the cryptocurrency market.

Read Also: LUNC and USTC to $1? Terra Classic Community Officially Passes Proposal to Burn 800M USTC

Implications of the Allegations

For investors, this revelation triggers understandable concerns about the integrity and fair practices of large financial institutions operating in the crypto market. It serves as a stark reminder of the importance of conducting due diligence before venturing into any cryptocurrency investment.

Regulators, too, find themselves confronted with complex challenges concerning the oversight and governance of the decentralized cryptocurrency market. The allegations brought forth against Citadel Securities highlight the need for enhanced regulatory scrutiny and a deeper understanding of the market dynamics at play.

While the veracity of Terraform Labs’ allegations against Citadel Securities remains unproven, their potential ramifications for the crypto market are too significant to ignore. It is imperative to remember that, at this stage, these allegations are yet to be substantiated, and Citadel Securities vehemently denies any wrongdoing.


Follow us on Twitter, Facebook, Telegram, and Google News

Adedoyin Aka

Adedoyin is a graduate of Law and a Crypto & Blockchain expert who strongly believes that Blockchain is the future. At TimesTabloid, she focuses on crypto and blockchain educational content.

Recent Posts

VeChain (VET) Price Prediction: Analyst Predicts a Massive Surge to $0.831

Egrag Crypto, a prominent analyst, recently took to Twitter to share his bullish outlook on…

3 mins ago

Here’s Why Binance Coin and Polygon Investors are Flocking to Furrever Token – You Don’t Want to Miss It

Investors are always on the lookout for the next big opportunity. Recently, Binance Coin (BNB)…

13 mins ago

Ripple Gives Update On What Is Next in XRP Lawsuit

The legal battle between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC)…

54 mins ago

BlockDAG’s Keynote Drives Presale Success, as Batch 13 Hits $27.7M; Chainlink & Apecoin Struggle with Downward Trends

The Chainlink (LINK) price forecast paints a bearish picture with a -17.18% Year-to-Date (YTD) return.…

6 hours ago

BlockDAG’s Dev Release 29 Launched: Redefining Blockchain Security With RandomX Protocol Amidst 5700 Miner Sales

BlockDAG's Development (Dev) Release 29 heralds the introduction of the RandomX protocol, a significant advancement…

10 hours ago

Top Analyst Says Shiba Inu (SHIB) Is a Potential Gold Mine. Here’s why

Shiba Inu (SHIB) has garnered attention from various analysts. One in particular, Davie, believes it…

13 hours ago