The co-founder of Terraform Labs called on the troubled FTX and Genesis to tell the public the truth and reveal the role in the death of the Terra LUNA ecosystem.
Do Kwon took to Twitter to FTX CEO Sam Bankman-Fried and urged him to confirm or deny his company’s involvement in the collapse of TerraUSD (UST). The co-founder of Terraform Labs firmly believes that Genesis Trading provided $1 billion worth of TerraUSD (UST) sablecoins to Bankman-Fried structures.
“At this point, it is public knowledge that the asset price drop that happened to UST in February 2021 was initiated by Alameda when they sold 500 million UST in minutes to drain Curve’s liquidity pools amid the Magic Internet Money crisis,” Do said. Kwon.
This is fairly public knowledge at this point, but the large currency contraction that UST went through in Feb 2021 was started by Alameda, when they sold 500mm UST in minutes to drain its curve pools during the MIM crisis
— Do Kwon (@stablekwon) December 8, 2022
Do Kwon alleges that Genesis Trading purchased billions of UST from the Luna Foundation Guard and transferred it to FTX and Alameda before depegging UST to the dollar, and Bankman-Fried used the funds to manipulate prices for the benefit of his companies, FTX and Alameda Research. Do Kwon is confident that Alameda has bet big on Terra’s (LUNA) price drop.
The accusations of the former head of Terraform Labs were made simultaneously with the publication of the New York Times, which says that New York prosecutors are studying the possibility of manipulation of Luna and TerraUSD cryptocurrencies by FTX founder Sam Bankman-Freed.
Source: Bits

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