SBF is the UST killer? FTX founder faces market manipulation investigation, Do Kwon comments: Is it you who caused Terra's downfall?

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SBF is the UST killer? FTX founder faces market manipulation investigation, Do Kwon comments: Is it you who caused Terra

The New York Times reported that federal prosecutors are investigating whether FTX founder SBF manipulated the LUNA/UST crash that occurred this spring, leading to a series of domino effects that ultimately resulted in the bankruptcy of the FTX exchange. In response, Terra founder Do Kwon, the party involved, of course, seized the opportunity to urge everyone to examine the possibility of this matter.

New York Times: Regulators Investigate Whether SBF Manipulated LUNA/UST and Ignited Crisis

The New York Times reports that U.S. prosecutors are looking into whether FTX founder SBF manipulated the markets for LUNA and UST earlier this year, causing Terra to collapse and FTX to face a crisis. Allegedly, SBF may have profited FTX and Alameda Research by manipulating the markets of these two tokens. However, the investigation is still in its early stages and prosecutors cannot confirm SBF's involvement.

In addition, SBF is also facing investigations for allegedly providing user funds illegally to Alameda and assisting in money laundering activities.

Terra Founder Do Kwon: Genesis, SBF, You Owe Us an Explanation

Terra founder Do Kwon retweeted the New York Times report and stated:

"Genesis, you owe us an explanation. Did you provide 1 billion UST to SBF or Alameda before our collapse as ammunition to stabilize the price, or was it out of genuine interest in Terra's DeFi ecosystem? "

Additional Information: LFG exchanged 1 billion UST for 1 billion USD worth of Bitcoin with Genesis

Do Kwon Asks Again: What Was the Purpose of Borrowing from Voyager?

Do Kwon further expressed that when UST deviated from its peg, Alameda borrowed a six-figure sum of Bitcoin from the now bankrupt lending platform Voyager and borrowed up to a seven-figure sum from other major institutions. The public needs to know what these funds were used for.

He suggested, was this to short Bitcoin and cripple LFG's Bitcoin defense fund?

Do Kwon: UST Crisis Initiated by Alameda

Do Kwon stated that the significant monetary contraction experienced by UST in February 2021 was initiated by Alameda, as they sold 500 million UST within minutes during the MIM crisis, depleting Curve's liquidity.

Terra Whistleblower Account FatMan: Terra Has Been Dumping UST All Along

However, prominent Terra whistleblower account FatMan refuted these claims. Based on blockchain data from their independent investigation, it was revealed that Terraform Labs itself dumped over 450 million UST during the LUNA/UST event.

Common Ground between Do Kwon and SBF

Regardless of the direct connection between the LUNA/UST incident and the FTX incident, the common ground between the two parties is the provision of high-yield fixed-rate products with unclear sources of actual interest rates and fund utilization. This ultimately led to significant user losses and as of now, no legal repercussions have been faced.