Citadel Securities refutes Terraform Labs’ accusations of involvement in UST collapse

Oct 27, 2023
Ken Griffin's company Citadel Securities refuted Terraform Labs' claim of involvement in the collapse of the Terra (UST) stablecoin in May 2022.

Earlier, the SEC accused Terraform Labs and its co-founder Do Kwon of fraud and selling unregistered securities. In turn, Terraform filed a petition claiming that Citadel was behind the collapse of UST and provided a history of correspondence on social networks.

On Thursday, Citadel stated at a court hearing that Terraform’s accusation of the company’s involvement in the collapse of the stablecoin is being used to distract attention from other crimes. Representatives of Citadel Securities reported the unfounded accusations against them, confirming only participation in two test transactions involving UST in the amount of about 30 cents.

In May 2022, the price of UST stablecoin with a capitalization of $18 billion began to fluctuate and dropped from $1 to 35 cents on May 9. The LUNA token was also expected to crash and by May 12, its value had dropped from $80 to a few cents.