According to Terraform Labs, Citadel Securities was involved in the collapse of its stablecoin.
Terraform Labs has implored the presiding judge to grant its motion, compelling Citadel Securities to disclose their trading data. Terraform alleges that Citadel Securities played a pivotal role in the catastrophic depegging incident of USTC in May 2022. Terraform Labs, under the leadership of Do Kwon, once again points an accusatory finger at Citadel Securities, alleging their participation in a coordinated and intentional scheme that led to the depegging of TerraUSD (UST) stablecoin in 2022. On the 10th of October, Terraform Labs initiated legal action by filing a motion in the United States District Court in the Southern District of Florida, seeking the disclosure of documents pertaining to Citadel Securities’ trading activities in May 2022, during the critical period when TerraUSD Classic (USTC) lost its peg. Terraform Labs argues that the depegging disaster of May 2022, when the asset plummeted from $1 to $0.02, was not the result of algorithmic instability but rather the...