Do Kwon, a co-founder of Terra blames Genesis and former FTX CEO Sam Bankman-Fried for the Terra-LUNA crisis. He is convinced that Sam Bankman-Fried or Alameda received $1 billion in TerraUSD (UST) stablecoins from Genesis Trading prior to the UST depeg.
A market manipulation investigation into whether FTX and Alameda Research contributed to the Terra-LUNA crisis has been launched by federal prosecutors looking into the FTX crisis and its connection to Alameda Research.
Do Kwon wants everyone to come clean
Do Kwon, the founder of Terra, revealed how Genesis Trading, Sam Bankman-FTX, Fried’s, and the hedge fund Alameda contributed to the demise of TerraUSD (UST) stablecoin and Terra in a series of tweets on December 8. (LUNA).
Do Kwon claims that before the USD depeg, Genesis Trading acquired billions in UST from Luna Foundation Guard (LFG) and moved it to FTX or Alameda. SBF took advantage of the funds to manipulate prices in favor of companies like FTX and Alameda Research.
Do Kwon also questioned why, during the UST depeg, Alameda borrowed more than $1 billion in Bitcoin from Voyager. Additionally, Alameda requested an additional $10 billion in Bitcoin from other significant businesses. He wants SBF to make public the details of these significant transactions.
He thinks Alameda, a cryptocurrency trading company run by Sam Bankman-Fried, made a significant wager that the price of LUNA would decline.
Additionally, he discloses that Alameda was responsible for the “significant currency contraction that UST underwent in February 2021.” In order to deplete the Curve liquidity pools during the Magic Internet Money (MIM) crisis, Alameda sold 500 million in UST in a matter of minutes.
The New York Times reported on Wednesday that U.S. federal prosecutors are looking into whether Sam Bankman-Fried, the founder of FTX, manipulated the market for two cryptocurrencies in May, causing their demise and the demise of his own cryptocurrency exchange.
According to the report, the prosecutors are investigating whether Bankman-Fried manipulated the prices of two interconnected currencies, TerraUsd and Luna, to the advantage of the companies he controlled, including FTX and Alameda Research.
The investigation is still in its early stages, the newspaper reported, adding that it is unclear whether or when prosecutors started looking into the TerraUSD and Luna trades, or whether they have found evidence of Bankman-Fried’s wrongdoing.