1 year ago
Terraform Labs (TFL), the developer of the failed Terra blockchain, wants to subpoena bankrupt FTX for applicable documents it could usage to support its lawsuit against the U.S. Securities and Exchange Commission (SEC), according to a July 19 tribunal filing.
In February, the SEC sued the blockchain developer and its erstwhile CEO, Do Kwon, alleging that their fraudulent activities and marketplace manipulation led to the illness of Terra/LUNA tokens.
However, the steadfast has consistently maintained that the Terra USD (UST) depeg was caused by a “coordinated ‘short’ onslaught by 3rd parties” who targeted the stablecoin and its ecosystem, causing astir $40 cardinal successful losses.
To beryllium its case, the Terra blockchain developer wants FTX to supply documents showing wallet addresses, trading accounts, and records of transactions involving the “sales/offers of ample volumes of cryptocurrencies” it developed, including UST and LUNA.
The steadfast specifically stated that it wants FTX to merchandise Jump Trading wallets showing its trades of UST and LUNA betwixt May 1 and May 31, 2021, and May 1 to May 31, 2022. Additionally, it wants the bankrupt steadfast to nutrient different abbreviated sellers’ trading accounts and wallets betwixt March 1 to May 31, 2022.
“This grounds is successful the Debtors’ possession, custody, and/or control. TFL seeks accusation from the centralized FTX International and US Exchanges astir wallets utilized by Jump Trading LLC to commercialized UST oregon LUNA connected these exchanges.”
Chris Amani, TFL’s new CEO, besides filed a supporting question arguing that publically disposable bid publication accusation showed that short sellers utilized FTX-related accounts to taxable monolithic merchantability orders astatine the opening of the onslaught connected UST. Amani added:
“Publicly availably blockchain information besides shows that wallets identified arsenic progressive successful the onslaught transferred the proceeds of their income of UST to FTX speech deposit wallets.”
As a result, TFL wants the Bankruptcy Court to let it to subpoena documents from FTX International and its U.S. subsidiary, FTX US. If granted, the steadfast wants the contiguous merchandise of these documents due to the fact that its proceedings would statesman by November 30.
The station Terraform Labs requests to subpoena docs from bankrupt FTX successful SEC lawsuit defense appeared archetypal connected CryptoSlate.
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