Terraform Labs Points Finger at Citadel Over TerraUSD Stablecoin Depreciation

Moreover, the motion cites “publicly available evidence” insinuating a plan by Citadel CEO, Ken Griffin, to short-sell the stablecoin during its depreciation in May 2022.

Highlighting this claim is a screenshot from a Discord conversation, where an unidentified trader professed to have engaged in dialogue with Griffin. Within this interaction, Griffin purportedly hinted at an intent to “Soros the f*** out of Luna UST.” This seems to allude to the aggressive trading methods George Soros is known for.

Nevertheless, Citadel Securities has continually refuted any engagements with trading the UST stablecoin during the specified timeframe. Additionally, whispers have emerged indicating that Do Kwon, the founder of Terra, might have been privy to the forthcoming collapse of the stablecoin.

Terraform’s motion accentuates the significance of procuring the documents from Citadel Securities, essential for their defense against a lawsuit lodged by the U.S. Securities and Exchange Commission in February. This lawsuit charges Terraform Labs and Do Kwon with masterminding a crypto asset securities fraud of a multi-billion-dollar magnitude.

Terraform underscores that its defensive stance would be undermined should Citadel Securities persist in retaining the demanded data.

In an event where the Florida court opts not to mandate Citadel to divulge the documents, Terraform has proposed a transfer of the case to the U.S. District Court for the Southern District of New York, hoping for a ruling by Judge Jed Rakoff.