Terraform Labs, founded by Do Kwon, has accused market maker Citadel Securities of intentionally causing the depeg of its stablecoin, TerraUSD Classic (USTC), in 2022. Terraform Labs has filed a motion in a US District Court to compel Citadel Securities to produce documents related to its trading actions during the time of the depeg. The company claims that the depeg was not caused by instability in the algorithm underlying the stablecoin, but rather by the intentional shorting of the asset by certain third-party market participants. The motion also cites evidence suggesting that Citadel head Ken Griffin intended to short the stablecoin. Citadel Securities has previously denied trading the TerraUSD stablecoin in May 2022. Terraform Labs argues that the requested documents are crucial for its defense in a lawsuit filed by the US Securities and Exchange Commission, which alleges the company’s involvement in a crypto asset securities fraud. If the court refuses to compel Citadel to produce the trading documents, Terraform has requested the matter be transferred to another court for decision. In July, Terraform Labs sought permission to subpoena data from bankrupt crypto exchange FTX for its defense.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Ken Griffin
Companies	FTX, U.S. Securities and Exchange Commission, U.S. District Court for the Southern District of New York, U.S. District Court, Judge Rakoff, Citadel Securities LLC, TerraUSD Classic (USTC), Terraform Labs, Southern District of Florida
Currencies	Terra, TerraClassicUSD
Securities	None