Terraform Labs Levies Serious Allegation Against Citadel
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October 13, 2023 4:09 pm
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Terraform Labs has just levied some very serious accusations against Citadel Securities.
In a recent court filing, Terraform alleged that a very large short position taken against TerraUSD (UST) by Citadel caused the stablecoin to crash in 2022.
The bankrupt crypto firm is now demanding that Citadel produce all documentation about that matter starting in May 2022.
Citadel continues to deny the allegations, here’s what we currently know:
Rumor is citadel is the culprit. pic.twitter.com/91F0jGnl5k
— Jacob Canfield (@JacobCanfield) May 10, 2022
Coin Telegraph explained:
The filing cited a screenshot from a Discord channel chat in which a pseudonymous trader had lunch with Griffin, who allegedly said, “They were going to Soros the f*** out of Luna UST,” presumably in reference to George Soros’ trading strategies centered around highly leveraged, one-way bets.
Colin Wu provided a synopsis: “Terraform Labs filed a motion to compel Citadel Securities to provide certain data in response to a third-party subpoena, alleging that Ken Griffin, head of the Citadel entity, intended to short UST during or around the May 2022 breakup. Citadel is one of the world’s largest high-frequency hedge funds.”
Terraform Labs filed a motion to compel Citadel Securities to provide certain data in response to a third-party subpoena, alleging that Ken Griffin, head of the Citadel entity, intended to short UST during or around the May 2022 breakup. Citadel is one of the world's largest…
— Wu Blockchain (@WuBlockchain) October 13, 2023
Decrypt provided this response from Citadel:
A Citadel Securities spokesperson told Decrypt: “This frivolous motion is based on false social media posts and ignores information we already provided confirming we had no role whatsoever in this matter.”
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