At the time, Terra warned that much of the selling pressure on UST came from Alameda Research.
The New York Times has published information stating that the United States Federal Prosecutor's Office may have expanded the investigation into FTX and Sam Bankman-Fried, as some indications point to the fact that Alameda Research may have played a leading role in the fall of Terra (LUNA) by manipulating the market.
US prosecutors may be investigating What role did Sam Bankman-Fried play in the collapse of the Terra ecosystem? and whether this was due to market manipulation tactics.
The research focuses on a Sudden surge in UST sell orders, Terra's algorithmic stablecoin, which led to the inability to balance purchase orders. This caused a Big drop in UST price, causing it to lose its 1 to 1 parity with the dollar.
As if it were domino pieces, the loss of the UST's parity with the dollar caused a drop in the price of Terra's native token, LUNA, since both were algorithmically linked.
Ultimately, this triggered a downward spiral, which caused the ecosystem to ultimately collapse.
Although it has not been possible to determine precisely what caused the sinking of LUNA (now LUNC) and UST, some information from the New York Times suggests that Most of the UST sell orders came from Alameda ResearchIn this regard, a source close to FTX explained to the American newspaper that Alameda Research made a big bet on the “fall in the price of LUNA.”
For its part, Bankman–Fried He has always maintained his innocence on any issue involving market manipulation, stating that: “I was not aware of any manipulation and, of course, never had any intention of participating in any”.
Do Kwon vs SBF
do kwon, CEO of Terraform Labs, who is still being sought by the Korean authorities, has not taken long to give his opinion on this news, in a tweet that he has shared with his followers, in which he suggests that it is time for Genesis Trading to tell the truth about an alleged loan of 1.000 million dollars in UST to Sam Bankman Fried or Alameda Research, shortly before the collapse of Terra.
Kwon places the blame squarely on Alameda, claiming that the massive UST squeeze was initiated when Alameda sold 500 million UST in a matter of minutes to try to drain Curve's reserves.
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