Terraform vs. Citadel Battle: Allegations Of UST Shorting In 2022 By Ken Griffin Revealed

Key Points:

• Terraform vs. Citadel reveals UST shorting in 2022 by Ken Griffin.
• Nansen data identified “whale” traders and vulnerabilities in the UST depeg, supporting Terraform Labs’ claims.

In the Terraform vs. Citadel battle, Terraform Labs alleged that Ken Griffin, head of the Citadel entity, intended to short UST around the May 2022 breakup.

The subpoenas aimed at trading data related to the “May 2022 Depeg.” Terraform Labs claims that publicly available evidence suggests that Citadel Securities’ head, Ken Griffin, intended to short UST during the depeg event, despite the company publicly denying any involvement.

According to Terraform Labs, Nansen data revealed the presence of influential traders and identified vulnerabilities in the UST depeg. Subpoenas were issued to multiple market participants, including Citadel Entities.

Terraform vs. Citadel battle

The court filing includes evidence from a Discord chat where an anonymous trader claimed to have had a conversation with Citadel CEO Ken Griffin, alleging his intention to heavily impact Luna UST. Furthermore, a post on X by Jacob Canfield in May 2022 hinted at the possibility of Citadel’s involvement.

Citadel Securities has denied trading stablecoins, including UST, and stated that it has no responsive documents to provide. In response, Terraform Labs argues that Citadel should turn over the trading data as it could impact the SEC’s case against them and present little burden to Citadel Securities.

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