Terra founder Do Kwon questioned whether Genesis Trading provided Sam Bankman-Fried and Alameda with $1 billion in UST as “peg attack ammunition.”
i think it’s time to @ Genesis Trading Reveals if they offered $1 billion in UST just before crash to SBF or Alameda – purchase from LFG was described as stemming from “interest to join Terra Defi ecosystem” – Does not provide ammo for peg attacks
— Do Kwon 🌕 (@stablekwon) December 8, 2022
In a December 8 Twitter thread, Kwon asked whether Genesis Trading’s purchase of $1 billion in UST from Luna Foundation Guard was due to its “interest in joining the Terra Defi ecosystem.” But he believes the lender gave these his USTs to Alameda to fund the peg attack.
He added that when Alameda borrowed 9-digit bitcoin from Voyager, the UST lifted the peg and asked other big companies to borrow more BTC. Kwon suspected these funds were used to short BTC and handicap the LFG reserves.
Kwon also stressed that the UST’s most significant currency contraction occurred in February 2021, when Alameda sold $500 million of UST in minutes during the MIM crisis, depleting Curb’s pool. did.
Community questions Kwon’s claims
Several members of the cryptocurrency community disagree with Kwon’s claims. indicate That UST and LUNA would have collapsed regardless of the attack.
Luna will already be down whether she attacks or not.
— Algod 🫐 (@AlgodTrading) December 8, 2022
others I got it Genesis was exposed to 3AC and this led to 3AC’s bankruptcy, so funding an attack on UST is silly. The hedge fund failure has had a major impact on the liquidity of Genesis Trading.
Again, 3ac’s exposure to Luna was not large in multi-billion funds (100-200m)
— Do Kwon 🌕 (@stablekwon) December 8, 2022
But Kwon claimed 3AC’s exposure to Luna is only about $100-200 million, which is relatively small for a multi-billion dollar hedge fund.
Authorities are investigating SBF for market manipulation
in the meantime, of new york times clearly federal investigators SBF manipulated Terra UST and Luna prices to benefit Alameda and FTX.
The report added that the investigation was still in its early stages and it was unclear whether prosecutors had discovered any wrongdoing. It was part of an extensive investigation.
US lawmakers have called on troubled founders to voluntarily appear at public hearings. Legislators threatened to summon him if he did not honor their invitation.
