Billionaire Ken Griffin’s Citadel Securities described as ”ridiculous” a claim by Terraform Labs that it was behind the collapse of the stablecoin terraUSD (UST).<\/p>\n
The comment came in a court filing on Oct. 27 after Terraform Labs had filed a motion earlier this month that alleged Citadel was a major cause of one of the biggest collapses ever recorded in the cryptocurrency market’s history.<\/span><\/p>\n
“To deflect attention from these allegations (and likely the crimes yet to be discovered), Terraform uses a motion to compel to pursue a ridiculous conspiracy theory exposing the purportedly hidden role of Citadel Securities in its self-imposed disaster,” the filing said. ‘`Not only is the time period of the request irrelevant, but the theory is baseless.”<\/p>\n
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Citadel said it only engaged in two test transactions involving UST that were valued at “roughly thirteen cents” and <\/span>asked the court to reject Terraform Labs’ filing. <\/span><\/p>\n
“Because Terraform has no good-faith basis for its requests, the Court should reject its effort to abuse the discovery process and provide sanctions as it deems appropriate,” it said<\/span><\/p>\n
On May 7, 2022, the price of UST started wobbling and de-pegging from the dollar. In the 48 hours that followed, the then-$18-billion algorithmic stablecoin fell to 35 cents. This also caused <\/span>LUNA<\/span><\/a>, a token designed to stabilize UST, to fall from $80 to just a few cents on May 12, 2022.<\/span><\/p>\n
Kwon was also charged with fraud by federal prosecutors hours after police in Montenegro <\/span>arrested<\/span><\/a> him.<\/span><\/p>\n