Table of Contents:

· Terraform Labs accuses Citadel Securities

· Citadel denies the accusation and claims Terra attempted to cover up collusion with Jump Trading

· Citadel denies trading UST after the market crash

BlockBeats Report, on October 27th, billionaire Ken Griffin's trading company Citadel Securities denied Terraform Labs' claim that Citadel Securities was the mastermind behind the UST crash in May last year, and stated that Terraform Labs' actions were used to shift attention away from its accusations, forcing people to pursue absurd conspiracy theories. Not only is the requested time period irrelevant, but the theory is also unfounded.

Terraform Labs accuses Citadel Securities

On October 13th, Terraform Labs submitted a motion to the court requesting that Citadel Securities "provide certain data according to a third-party subpoena" and stating that this is "crucial" to its defense in the lawsuit filed by the SEC in the United States. An motion was included in the submission.

The motion states that Terraform Labs has issued subpoenas to Citadel Securities and Citadel Enterprise Americas regarding transaction data related to "the May 2022 anchor detachment". Terraform points out that publicly available evidence suggests that Ken Griffin, the head of Citadel entities, intends to short UST before and after the May 2022 anchor detachment.

Terraform Labs announced this motion based on social media. An anonymous user named "Gigantic Rebirth" claimed on their account that Ken Griffin, the CEO of Citadel Securities, revealed his plans during bi-monthly lunches and "delicious bacon ribs".

Citadel says this theory is "baseless".

Citadel denies allegations, accuses Terra of attempting to cover up collusion with Jump Trading

Regarding this, Citadel claims that Terra's attempt to do so is to "shift" the accusation of colluding with Jump Trading to "boost asset prices".

Related reading: "Insider: UST's detachment last year was saved by Jump, they misled the market"

He called the venture capital fund Jump Crypto, which he had been working with, and begged them to help. Out of greed, Jump agreed to the deal: Jump would provide emergency assistance to Terra in exchange for monthly LUNA payments. More details will be discussed another day.

This bailout plan was never made public. You won't find any related articles online, as it was intentionally hidden from retail investors. We now know all of this, thanks to my insider at Jump.

Citadel has requested that the court reject Terraform's motion to compel, claiming that it only participated in "two test transactions with a total value of approximately $0.13," and therefore did not cause any decoupling. Citadel claims that it provided Terraform with discovery that "indicates it did not engage in meaningful transactions with the relevant cryptocurrency," making "exploration of Citadel's securities trading strategy irrelevant and immaterial."

However, Citadel not only requests that the court reject Terraform's motion, but also requests that the court "sanction Terraform's false and harassing requests," on the grounds that it has complied with necessary discovery and that the motion to compel is a "malicious" act by Terra. If the court proceeds with sanctions, Terra may be required to pay legal fees and may even face "income loss," but specific figures have not been disclosed.

In addition, BlockBeats reported on March 1st last year that hedge fund giant Citadel's founder and CEO Kenneth Griffin said the company will explore cryptocurrency market-making business in the coming months. On June 8th, Citadel Securities is collaborating with high-frequency trading and market-making company Virtu Financial to build a "cryptocurrency trading ecosystem" with the help of Sequoia Capital and Paradigm.

On September 22nd of this year, according to an announcement from the official source, the US Securities and Exchange Commission (SEC) has reached a settlement with market maker giant Citadel Securities over allegations of violating short-selling regulations regarding order tagging requirements. Citadel Securities has agreed to pay a fine of $7 million.

Citadel denies trading UST after the crash

On February 17th, the US SEC issued a statement alleging that Terraform Labs PTE Ltd and Do Hyeong Kwon, based in Singapore, had planned a multi-billion dollar cryptocurrency securities fraud involving algorithmic stablecoins and other cryptocurrency securities. The SEC has filed a lawsuit against them in the US Southern District Court of New York, accusing them of violating registration and anti-fraud provisions of the Securities Act and the Exchange Act. The announcement can be found at this link.

According to the SEC's allegations, Terraform and Do Kwon raised billions of dollars from investors through the issuance and sale of a set of interrelated cryptographic asset securities, many of which were conducted in unregistered transactions, including security-based swap transactions mAssets and cryptographic securities called algorithmic stablecoin Terra USD (UST).

In addition, SEC also accused Terraform and Kwon of providing and selling other ways for investors to invest in their "cryptocurrency empire", including encrypted asset securities Token MIR (or Mirror Token) and LUNA itself. Terraform and Kwon promoted encrypted asset securities to investors and repeatedly claimed that these Tokens would appreciate in value.

On May 10th, 2022, the native algorithmic stablecoin UST in the Terra ecosystem experienced a severe anchor detachment event due to capital hunting and debt crisis, dropping to a minimum of 0.6 USD. From April 2018 to May 2022, the plan ultimately collapsed, and the second largest public chain ecosystem with a TVL of nearly 20 billion USD replayed the horror disasters of Thai baht and Lehman Brothers in just two days.

Related reading: "84 million dollars leverages a 40 billion financial empire, the rise and fall of UST".

For a long time, supporters and skeptics of Luna have been extremely extreme. Supporters call themselves the "Lunatics" army, attacking and sweeping criticism of the Luna mechanism on social media platforms such as Twitter every day; skeptics expect the collapse of Luna based on the "Ponzi" scheme. Such a highly "tense" ecology is difficult for speculators to ignore. These capital killers always pay attention to the industry trend and wait for the best hunting moment.

Later, rumors have it that asset management company BlackRock and hedge fund giant Citadel Securities jointly borrowed 100,000 bitcoins (about 3 billion US dollars) from the cryptocurrency trading platform Gemini to purchase UST, which resulted in the sell-off of assets, causing a market crash and destroying the market value foundation of LUNA, which was worth more than 25 billion US dollars. On May 12th, BlackRock and Citadel Securities separately emailed Forbes to deny trading TerraUSD.

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