Did Black Rock & Citadel Cause LUNA To Free Fall?

May 11, 2022 4:34 pm

Ever since LUNA went into freefall, rumors have been flying around claiming that Blackrock and Citadel were behind the crash.

Those rumors got even bigger after the CEO of Cardano Charles Hoskinson tweeted a photo that stated that both Blackrock and Citadel borrowed 100 BTC from Gemini and then proceeded to swap 25k of that BTC to UST.

The tweet would go on to say that the co-founder of Terra Do Kwon “took the bait” from Blackrock and Citadel which then caused UST to lose liquidity.

Here’s a screenshot of the now-deleted tweet:

 

Coin Cu News had these details to share:

Cardano developer Charles Hoskinson just posted a message alleging the cause of the LUNA and stablecoin UST price drops.

The plan involved crypto investment management firms Blackrock and Citadel, according to a message sent to Hoskinson by a person named Anna, who claimed to have borrowed 100,000 Bitcoins from Gemini. These firms were supposed to have changed 25,000 Bitcoins into UST after receiving the total amount.

They then contacted Do Kwon, saying to want to sell a large amount of BTC for UST. They were alleged to have offered to sell a large number of BTC for a discounted price, which the latter accepted. Unfortunately, this resulted in UST’s liquidity being reduced.

When this happened, Blackrock and Citadel allegedly dumped all of the bitcoins and the UST, causing massive slippage and forcing liquidation of both assets.

“Blackrock and Citadel can now buy the BTC back cheaply to repay the loan and pocket the difference. Meanwhile, billions of longs and Bitcoin VaR were wiped out,” the message reads.

Investing reported on the story too:

Cardano creator Charles Hoskinson recently shared a message that alleges the cause of the price crash of Terra (LUNA) and stablecoin UST.

According to a message sent to Hoskinson by a person named Anna, the event is a well-executed strategy that capitalized on Terraform Labs CEO Do Kwon’s alleged naivety and Anchor being an alleged Ponzi scheme.

The scheme involved crypto investment management firms Blackrock and Citadel, whom the person Anna claimed to have borrowed 100,000 bitcoins from Gemini. After receiving the said amount, these companies were claimed to have converted 25,000 bitcoins into UST.

Afterward, they contacted Do Kwon, saying that they wanted to sell a lot of BTC for UST. However, they were said to have offered to sell a significant amount of BTC for a discount, which the latter accepted. Unfortunately, this caused UST to lower its liquidity.

Once this happened, Blackrock and Citadel were alleged to have dumped all the bitcoins and the UST, which caused huge slippage and triggered a cascade of forced liquidation in both assets.

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