Terra Classic

<ul><li>Terraform Labs, currently facing an SEC lawsuit, alleges that Citadel Securities intentionally devalued its stablecoin in May 2022.</li><li>The cryptocurrency company insists Citadel&#39;s involvement caused the stablecoin&#39;s crash from $1 to $0.02, citing evidence of Citadel&#39;s intention to short UST.</li><li>Terraform requests trading data from Citadel for their defense against the SEC&#39;s allegations.</li></ul>Terraform Labs has accused  U.S.-based American market-making firm, Citadel Securities LLC, of intentionally destabilizing TerraUSD (UST) stablecoin in May 2022. The accusation claimed that this was not the result of an algorithmic failure, but rather a concerted, intentional effort by the firm.The purpose of UST stablecoin is to maintain its 1:1 peg to the U.S. dollar. To ensure this, the supply and demand for UST must be balanced via an arbitrage strategy. If UST trades higher than $1, users are incentivized to mint UST and burn its sister token LUNA (which is also the network&#39;s staking and governance asset). This lowers the Terra price of UST by increasing the supply and, in turn, increases the LUNA price by reducing its supply.As of now, the court in the Southern District of Florida, where Terraform <a href="https://www.courtlistener.com/docket/67867673/1/terraform-labs-pte-ltd-v-citadel-securities-llc/" rel="noopener noreferrer nofollow">filed</a> the request on October 10, has not made a decision. Terraform has also requested the case to be transferred to the Southern District of New York, where the SEC&#39;s lawsuit is based, for oversight by Judge Jed Rakoff, who is presiding over the SEC v. Terraform case.Read full article at <a href="https://cryptotale.org/terraform-labs-accuses-citadel-securities-of-terrausd-depeg/" rel="noopener noreferrer nofollow">CryptoTale.</a>

Terraform Labs Accuses Citadel Securities of TerraUSD Depeg

CryptoTale

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