1 year ago
Billionaire Ken Griffin's trading firm, Citadel Securities, denied a assertion from bankrupt Terraform Labs that it was down the illness of the algorithmic stablecoin terraUSD (UST) successful May past year.
Earlier this year, the U.S. Securities and Exchange Commission (SEC) charged Terraform Labs and its co-founder and erstwhile CEO Do Kwon with fraud, selling unregistered securities, selling unregistered security-based swaps and different related claims. Federal prosecutors successful New York besides charged Do Kwon with fraud hours aft helium was arrested by constabulary successful Montenegro.
Citadel said successful a tribunal filing connected Thursday that Terraform's assertion that Citadel was down its illness is being utilized to deflect attraction from its charges. "To deflect attraction from these allegations (and apt the crimes yet to beryllium discovered), Terraform uses a question to compel to prosecute a ridiculous conspiracy mentation “exposing” the purportedly hidden relation of Citadel Securities successful its self-imposed disaster," the steadfast said.
"Not lone is the clip play of the petition irrelevant, but the mentation is baseless," Citadel added.
The filing comes aft Terraform filed a motion earlier this period alleging Citadel was down the collapse, citing societal media posts. However, Citadel said the societal media sources of Terraform's claims, including an relationship of pseudonymous idiosyncratic “Gigantic Rebirth,” who said Griffin divulged his plans to depeg UST implicit "nice bacon rib" lunch, is "absurd connected its face."
The Terra web and Do Kwon roseate to the highest tier of the crypto satellite acknowledgment to big-shot investors, lone to autumn isolated wrong a fewer days successful May 2022. On May 7, the terms of the then-$18-billion algorithmic stablecoin UST, which is expected to support a $1 peg, started to wobble and fell to 35 cents connected May 9. Its companion token, LUNA, which was meant to stabilize UST's price, fell from $80 to a fewer cents by May 12. The illness sent a shockwave passim the crypto sector, yet starring to a prolonged crypto winter.
Citadel said it lone engaged successful 2 trial transactions involving UST, with a corporate worth of "roughly thirteen cents," noting that Terraform is alert that the hedge money "could not and did not play the relation it suggests successful its question to compel."
"Because Terraform has nary good-faith ground for its requests, the Court should cull its effort to maltreatment the find process and supply sanctions arsenic it deems appropriate," the hedge money titan said. Terra whitethorn person to wage for "lost net and tenable attorney's fees" if the tribunal imposes a sanction, Citadel added.
Edited by Kevin Reynolds.
English (US) 