Terraform Labs contends Citadel Securities had a hand in its stablecoin collapse

Do Kwon-founded Terraform Labs has again pointed the finger at market maker Citadel Securities for its role in an alleged “concerted, deliberate effort” to trigger the depeg of its stablecoin in 2022. On Oct. 10, Terraform Labs submitted a movement in the United States District Court in the Southern District of Florida to compel Citadel Securities LLC to produce files relating to its trading actions in May 2022, around the time its stablecoin, now known as TerraUSD Classic (USTC), depegged. If the court declines to oblige Citadel to produce the trading files, Terraform asked for the matter be moved to the U.S. District Court for the Southern District of New York for decision by Judge Rakoff.

Do Kwon-founded Terraform Labs has once again pointed the finger at market maker Citadel Securities for its role in an alleged “collective, intentional effort” to trigger the depeg of its stablecoin in 2022. On Oct. 10, Terraform Labs submitted a motion in the United States District Court in the Southern District of Florida to force Citadel Securities LLC to produce documents relating to its trading actions in May 2022, around the time its stablecoin, now understood as TerraUSD Classic (USTC), depegged. If the court declines to compel Citadel to produce the trading files, Terraform requested the matter be transferred to the U.S. District Court for the Southern District of New York for choice by Judge Rakoff.