Lawyers representing Terraform said a “coordinated short attack” caused the stablecoin to falter and that those sellers likely used FTX to, in part, conduct that attack, in a court document filed on Wednesday.Connect/Create WalletNo wallet? No problem. You can set one up for free. We recommend Torus for first-time users.
Lawyers representing Terraform said a “coordinated short attack” caused the stablecoin to falter and that those sellers likely used FTX to, in part, to conduct that attack, in a motion filed on Wednesday in the U.S. Bankruptcy Court for the District of Delaware involving FTX. “These records are crucial to TFL’s defense in the SEC Action—for example, for TFL’s experts to perform crucial blockchain analysis of the short-sellers’ trading and market activity to combat the SEC’s allegations, among other things,” the lawyers said.The SEC said the company and Kwon misled investors about how stable the stablecoin really was. Algorithmic stablecoins, like TerraUSD, use market incentives via algorithms to maintain a stable price.
The SEC also said Terraform and Kwon misled investors when the stablecoin depegged previously in May 2021 and they said it was restored by an algorithm. Instead,In the motion filed this week, Terraform said Jump “was not the cause for the restoration of the peg in 2021.”in Montenegro of using a fake Costa Rican passport in an attempt to leave the country in March and sentenced to four months in jail.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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