SBF Is Thought To Have Led Terra/Luna Company To Collapse
Does Kwon intervene as FTX’s Bankman-Fried is under investigation for market manipulation?
Federal prosecutors are investigating the potential involvement of the infamous trader and Alameda in the Terra/LUNA case as part of a larger research into the destruction of the former crypto exchanging service.
The government opinion
According to reports, US state governors are searching into the possibility that Sam Bankman-Fried, the former CEO of FTX, used market manipulation techniques to contribute to the collapse of the Terra ecosystem.
An article from Dec. July 7 was published in the media study from the famous finance-related newspapers, prosecuting attorney claimed that Bankman and his Freed domain were defrauding Terra’s algorithmic stable tokens by deliberately injecting significant amounts of money into it as part of a larger investigation into the failure of FTX itself.
They were looking into whether you ordered TerraClassicUSD, USTC (previously UST) with the intention of selling it.
It has reportedly become challenging to match related purchasing bids due to the increase in Terra’s in-made coins sell orders.
The collapse of Terra
To one US dollar, the ratio is 1. The inner coin of Terra, LUNC (previously LUNA), was also destroyed as a result of this incident.
Most parts of the Terra coins trade sell commands were sent to SBF exchanging company Alameda, despite the fact that the NYT claimed it was unable to identify the exact reason for the May crashes of the Terra/Luna company.
The source of such info is the recent research published in the media.
According to Alameda Researched, who is knowledgeable about the situation, it was considered to be a significant wager on the value of the Terra native token.
According to the NYT, Bankman-Fried stated that he had no understanding of marketplace influence and never meant to affect the marketplace in any form, much like the majority of remarks he has made since FTX’s demise.
He continued that to his understanding, all kinds of transactions were for investing or hedge-making purposes.
Do Kwon, CEO of Terraform Labs sent a tweet to one million subscribers on November 1 in response to a recent article and proposed that it was the right moment to talk about the declared financing of his companies just before the collapse.
