Terraform Labs Submits Request for Citadel Securities to Disclose Certain Documents
Terraform Labs (TFL) has submitted a request for Citadel Securities to disclose documents related to its trading behavior in May 2022.
Earlier this month, the TerraUSD (UST) algorithmic stablecoin lost its peg to the US dollar, leading to a sharp decline in the value of the LUNA token used to back it.
This resulted in a total loss of approximately $40 billion for traders and investors.
TFL, which is responsible for the development of the Terra ecosystem, believes that the drop in assets was not caused by instability in the algorithm, contrary to the claims made by the SEC.
Instead, the petition argues that the market was deliberately destabilized by certain third-party participants who shorted UST in an effort to manipulate its price away from the US dollar.
TFL claims to have publicly available evidence to support this allegation.
