Terraform Labs requests to subpoena docs from bankrupt FTX in SEC case defense

Terraform Labs (TFL), developer of the failed Terra blockchain, is seeking relevant documents it can use to defend its lawsuit against the U.S. Securities and Exchange Commission (SEC), according to a court on July 19. , hopes to summon bankrupt FTX filing.

In February, the SEC sued the blockchain developer and its former CEO Do Kwon, accusing them of fraud and market manipulation that led to the collapse of the Terra/LUNA token.

However, the company has consistently said that Terra USD (UST) depeg was caused by a “organized third-party ‘short’ attack” targeting the stablecoin and its ecosystem, resulting in a loss of approximately $40 billion. and claims.

To prove their claims, Terra blockchain developers have asked FTX to provide wallet addresses, trading accounts, and transaction records related to the “mass sale/provision of cryptocurrencies” developed by the company, including UST and LUNA. We are requesting the provision of documents showing

The company hopes FTX will release a jump trading wallet showing UST and LUNA trades from May 1 to May 31, 2021 and from May 1 to May 31, 2022. said specifically. He also said he hopes the bankrupt firm will create other short sellers. Trading accounts and wallets from 1 March to 31 May 2022.

“This evidence is in the possession, custody and/or control of the debtor. TFL has authorized Jump Trading LLC to trade UST or LUNA on these exchanges from the central FTX international exchange and the US exchange. I would like information about the wallet used by

TFL’s new CEO, Chris Amani, also said publicly available orderbook information showed that short sellers were using FTX-related accounts to place a large number of sell orders at the start of the attack on UST. argued and filed a motion of support. Amani added:

“Public blockchain data also indicates that the wallet identified as involved in the attack was transferring UST sales proceeds to an FTX exchange deposit wallet.”

As a result, TFL is asking the bankruptcy court to grant subpoenas from FTX International and its US subsidiary, FTX US. If granted, the company hopes to release these documents immediately as the trial will begin by Nov. 30.

The post, Terraform Labs requesting subpoenas of documents from bankrupt FTX in SEC litigation defense, first appeared on CryptoSlate.