Terraform Labs, the company behind the Terra blockchain ecosystem, has filed a lawsuit against Citadel Securities, accusing the market-making giant of manipulating Terra’s UST stablecoin. The lawsuit alleges that Citadel Securities deliberately caused the UST stablecoin to deviate from its $1 peg, resulting in significant losses for Terra. Contrary to popular belief, Terraform Labs argues that the destabilization was not due to algorithmic mismanagement but rather Citadel Securities’ intentional efforts to “short” the UST. The lawsuit seeks trading data to confirm these allegations. Terraform Labs has faced obstacles in obtaining the necessary records from Citadel Securities, but if successful, the lawsuit could have implications for the regulation of market manipulation in the crypto industry.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Ken Griffin
Companies	U.S. SEC, U.S. District Court for the Southern District of Florida, Discord, Terraform Labs, Citadel Securities
Currencies	None
Securities	None