In a recent development, Terraform Labs, a defunct crypto network, has accused Citadel Securities of intentionally destabilizing its stablecoin, TerraUSD classic (USTC), leading to its downfall in 2022. Terraform Labs has filed a document in a US District Court, requesting Citadel Securities to produce documents related to its trading activities during the time when USTC depegged. USTC experienced a significant drop in value last May, losing its peg by almost 70% in a matter of hours and eventually crashing to $0.02 later that month. While initial claims pointed to algorithmic instability, Terraform Labs now alleges that the plunge was primarily caused by certain third-party market participants. The company cites “publicly available evidence” suggesting that the head of Citadel Securities, Ken Griffin, planned to short the stablecoin during that period. The court document also highlights Citadel’s $61 billion in resources, indicating its ability to potentially manipulate markets. Terraform Labs has previously sought court permission to obtain data from defunct exchange FTX to support its case and defense. Meanwhile, Do Kwon, the founder of Terraform Labs, is facing legal troubles, including a case of multi-billion dollar fraud and forgery of travel documents. Despite these challenges, a group of investors has dropped their class action lawsuit against Do Kwon and Terraform Labs, reducing the company’s legal issues.

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Information	Details
Geography	North America
Countries	🇲🇪 🇺🇸
Sentiment	negative
Relevance Score	1
People	Ken Griffin
Companies	Citadel Securities LLC, Terraform Labs, FTX, Binance Futures, PrimeXBT
Currencies	TerraClassicUSD
Securities	None