Terraform Labs Asserts Citadel Depegged UST with New Filing

Terraform Labs seeks trading data from Citadel Securities, alleging involvement in the UST stablecoin collapse.

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  • Terraform Labs has accused Citadel Securities of involvement in the UST market collapse.
  • The firm has formally requested relevant information from Citadel Securities.
  • Terraform Labs still faces a legal battle with the Securities and Exchange Commission.

The infamous Terra Luna crash was one of the major incidents that shook the cryptocurrency industry in 2022, resulting in investors losing over $50 billion.

As ongoing investigations seek to unravel the events leading up to the collapse, Terraform Labs has alleged that the abrupt depreciation of its stablecoin was not a mere algorithmic failure but rather the result of deliberate actions by Citadel Securities.

The Terraform Labs-Citadel Securities Fiasco

On October 10th, Terraform Labs filed a motion in the U.S. District Court of Southern Florida to release Citadel Securities’ trading data from May 2022.


Terraform Labs alleges the “concerted” and “intentional efforts” of Citadel Entities’ CEO Ken Griffin to short UST around the time of its depreciation from its one-dollar price, adding that it has obtained “publicly available evidence” that contradicts the capital markets firm’s denial of any involvement in UST trading at the time.

The firm asserts that the requested data is crucial for its defense in the ongoing legal battle involving the Securities and Exchange Commission (SEC) and Terraform Labs founder Do Kown, who faces charges, alongside the firm’s executives, of manipulating Terra tokens to defraud customers.

The trading strategy information sought from Citadel Securities is highly relevant to Movant’s defense in the Underlying Action, and this defense will be substantially impaired if Citadel Securities is successful in withholding this limited information. For these reasons, the Court should grant the instant motion to compel.”

A Citadel Securities spokesperson told DailyCoin that the motion is “based on false social media posts and ignores information we already provided confirming we had no role whatsoever in this matter.” Citadel Securities further underlined that they had already responded to the initial subpoena.


“Citadel has no trading in the Terra Financial Instruments or the Terra-Native Tokens and therefore has no responsive documents.” The firm told Terraform Labs.

To dive deeper into the ongoing saga surrounding Terraform labs and former CEO DoKwon, read here:
Caught in the Act: Do Kwon Boasts About Thin Air Transactions 

SocialFi platform recovered 90% of assets lost to a recent hack; read more:
Stars Arena Reclaims 90% of Lost Funds, Rewards Hacker 10%

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.