Manhattan prosecutors believe Sam Bankman-Fried and Alamada Research were behind Terra’s collapse last May. Was there manipulation of the LUNA and TerraUSD cryptocurrency market at the time? This is what they will try to elucidate through an investigation. Do Kwon is among the first to gloat over this news.
Launch of an investigation into the involvement of SBF in the fall of Terra
” What was done in the dark will come to light. »
This quote borrowed from the late rapper Tupac Shakur comes directly to us from Do Kwon. The on the run co-founder of TerraForm Labs actually took advantage of this post from the New York Times to drop a series of comments to absolve themselves of any responsibility for TerraUSD’s loss of peg to the dollar last May.
First, he talked about a story of $1 billion of UST handed over by Genesis Trading to SBF or Alameda Research just before the Terra fiasco. Then, he revealed that Alameda took out a loan to ” 9 digits in bitcoins at Voyager at depeg time. This motivated many borrowings causing the loss of Luna Foundation Guard (LFG).
Barely launched, this investigation has already delighted the former strongman of Terra. However, it will take time for these prosecutors to be able to prove the existence of a link between the collapse of Terra and the possible market manipulations perpetrated by SBF and his entire gang.
What would motivate such an investigation?
The fact that TerraUSD fell after an expertly staged hit by SBF and Alameda would worry New York prosecutors. However, New York Times sources clarified that FTX was behind the sell orders that preceded this unfortunate event. The currently bankrupt crypto exchange reportedly achieved “ big profits by manipulating the market as it sees fit.
Sam Bankman-Fried has previously denied this accusation:
” I was unaware of any market manipulation and certainly never intended to engage in it. As far as I know, all trades were for investment or hedging. “, he specified.
But no one is fooled. Several personalities are beginning to recognize in SBF an ace of lies and deceit. Elon Musk knew from the start that he didn’t have $3 billion to pour into Twitter. Besides, the boss of Tesla has just discovered that he sucks at League of Legends (LoL). Anything SBF says will be held against him, and Do Kwon relishes that instead of answering for his actions in court.
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