On October 10, Terraform Labs filed a motion in the U.S. court in Florida to force Citadel Securities to share documents regarding their trading activities in May 2022 when USTC’s value depegged from its intended value.
Terraform Labs, a company founded by Do Kwon, has once more accused Citadel Securities of actively trying to make its stablecoin, TerraUSD Classic (USTC), lose its value in 2022.
It argues that the drop in value of the asset in May 2022, when it went from $1 to $0.02, was not due to issues with its underlying algorithm but rather because some external parties intentionally bet against the stablecoin, causing its price to plummet.
The legal document also mentions that there is “publicly available evidence” indicating that Ken Griffin, the leader of Citadel, may have planned to bet against the stablecoin’s value shortly before it was depegged.
A pseudonymous trader mentioned that Griffin had revealed intention to use George Soros trading strategies, which involve making high-risk bets with a lot of borrowed money, on the TerraUSD.
However, Citadel Securities had previously denied trading TerraUSD in May 2022, as reported by Forbes.
Terraform is arguing that certain documents are really important for their defense in the lawsuit brought against them by the U.S. SEC in February. The SEC is accusing Terraform Labs and its founder, Do Kwon, of being involved in a massive crypto asset securities fraud scheme worth billions of dollars.
If the court doesn’t make Citadel hand over these documents, Terraform is asking that the case be moved to the U.S. District Court for the Southern District of New York, and they want Judge Rakoff to make the decision.