Terraform Labs Accuses Citadel of Intentionally Causing Stablecoin Collapse!

The post Terraform Labs Accuses Citadel of Intentionally Causing Stablecoin Collapse! appeared first on Coinpedia Fintech News

Terraform Labs has accused market maker Citadel Securities of a “concerted, intentional effort” to cause the collapse of its stablecoin in May 2022. In a motion filed in a Florida court, the blockchain firm called on Citadel to produce documents related to its trading actions around the time of the depreciation of TerraUSD Classic from $1 to $0.02. Terraform Labs alleges that the fall was the result of “third-party market participants” shorting the stablecoin, rather than a flaw in its algorithm. Citadel has denied trading the coin at that time. Terraform is fighting a lawsuit from the SEC alleging securities fraud.