The world’s largest asset manager, Blackrock, and hedge fund giant Citadel Securities have denied claims that they had a role in the fall of terrausd (UST) and terra (LUNA). Crypto exchange Gemini also denied lending bitcoin to cause the terra fall.
Blackrock, Citadel Securities, Gemini Deny Rumors
After algorithmic stablecoin terrausd lost its peg at the U.S. Dollar this week, rumors circulated that Blackrock Securities, Citadel Securities and Gemini were involved in the collapse. The accusation was quickly refuted by all three companies.
Blackrock Securities and Citadel Securities allegedly borrowed 100K BTC cryptocurrency exchange Gemini, and then swapped 25 percent for UST. The BTC was then withdrawn and BTC traded in exchange by both companies.
On Wednesday, the official Twitter account of Blackrock, the world’s largest asset manager, tweeted:
Rumours that we played a part in the collapse of UST have been proven to be completely false. Blackrock doesn’t trade UST.
Circle Internet Financial Ltd. (USDC) is an alternative stablecoin issued by Circle Internet Financial Ltd. The asset manager has recently invested in Circle Internet Financial Ltd. Circle’s stablecoin is currently the fourth-largest crypto with a market cap of almost $50 billion.
Gemini, a cryptocurrency exchange, also denies the rumors. On Wednesday, the company posted:
A recent report suggested Gemini loaned 100K BTC large institutions to counter-parties. The alleged result was a sale in LUNA. Gemini did not make such a loan.
Citadel Securities, a major hedge fund firm, also claimed that the company had nothing to do the collapse of stablecoin UST. A representative of the firm told Bloomberg that the company “does not trade stablecoins, including UST.”
Citadel Securities stated in March it will be making markets in cryptocurrency over the next months.
The crypto market has been shaken by the collapse of LUNA. The price of the cryptocurrency is at $0.035, nearly 100% lower than the previous 24 hours. UST has fallen to $0.30, but since then it is back at $0.60.
Are you convinced that Blackrock and Citadel Securities played a part in the fall of Terra? We’d love to hear from you in the comment section.
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