The story surrounding the FTX drama takes another special turn. US prosecutors have launched an investigation into the possible role of the CEO of ftxSam Bankman-Fried, on the demise of the Terra (LUNA) ecosystem in May this year, who reports the New York Times.
SBF and LUNA
It appears, according to the New York Times, that authorities in the United States suspect that SBF was involved in the collapse of Terra and the associated collapse. stablecoin UST.
“The case is part of a wider investigation into the collapse of the Bahamas-based cryptocurrency Mr. Bankman-Fried’s empire and the potential misappropriation of billions of dollars in client money.”
People familiar with the matter have revealed that SBF may have manipulated the market in favor of its own companies; FTX and Alameda Research. Such actions could possibly have been the first domino of the drama that then unfolded over several months.
It is important that this is only about opening an investigation. It has therefore not yet been established under any circumstances that SBF actually had anything to do with the destruction of the Terra network. The aim of the research is to find out exactly this.
Terra founder responds
Meanwhile, the founder of the Terra network, Do Kwon, already reacted to the news that an investigation into SBF has been launched. He states that “What was done in darkness shall come to light.”
I think the time has come for @GenesisTrading to reveal if they provided the $1B UST shortly before the crash to SBF or Alameda – the purchase from LFG was represented as voting from “interest to participate in the Terra Defi ecosystem” – not to provide ammo for a peg attack
— Do Kwon 🌕 (@stablekwon) December 8, 2022
“I think it’s time for Genesis Trading to reveal whether they provided the $1B UST to SBF or Alameda shortly before the crash, the purchase of LFG was presented as arising out of ‘interest in joining the Terra Defi ecosystem’, not to provide ammunition for a peg attack.”
We will not be able to say with certainty what the role, or whether there was any role at all, of SBF in the Terra debacle earlier this year. Research into this is still in its infancy and could take quite some time to complete.