Terra co-founder Do Kwon on Thursday blamed former FTX CEO Sam Bankman-Fried and Genesis for the Terra-LUNA crisis. He strongly believes that Genesis Trading provided $1 billion in TerraUSD (UST) stablecoins to Sam Bankman-Fried or Alameda before the UST depeg.
The statement comes as federal prosecutors investigating the FTX crisis and its relation to Alameda Research start a market manipulation inquiry into whether FTX and Alameda led to the Terra-LUNA crisis.
Terra’s Do Kwon Wants SBF and Genesis to Reveal the Truth
Terra founder Do Kwon in a series of tweets on December 8 reveals how Sam Bankman-Fried’s FTX, hedge fund Alameda, and Genesis Trading caused the collapse of TerraUSD (UST) stablecoin and Terra (LUNA).
Do Kwon asserts Genesis Trading purchased billions in UST from Luna Foundation Guard (LFG) and transferred it to FTX or Alameda before the USD depeg. SBF used the funds to manipulate the prices to benefit entities including FTX and Alameda Research.
“I think the time has come for Genesis Trading to reveal if they provided the $1B UST shortly before the crash to SBF or Alameda – the purchase from LFG was represented as stemming from “interest to participate in the Terra Defi ecosystem” – not to provide ammo for a peg attack.”
Do Kwon also questioned why Alameda borrowed over $1 billion in Bitcoin from Voyager during the UST depeg. Also, Alameda asked other large firms to borrow more Bitcoin, approximately $10 billion. He wants SBF to reveal the truth behind these large transactions. He believes Sam Bankman-Fried’s cryptocurrency trading firm Alameda placed a big bet on the price of LUNA falling.
In addition, he reveals that Alameda was behind the “large currency contraction that UST went through in Feb 2021.” Alameda sold 500 million in UST in minutes to drain the Curve liquidity pools during the Magic Internet Money (MIM) crisis.
“What’s done in darkness will come to light.”
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