US Prosecutors Probing Whether Former FTX CEO Sam Bankman-Fried Influenced the Terra (LUNA) Implosion: Report

US federal prosecutors are reportedly investigating a potential link between former FTX CEO Sam Bankman-Fried’s crumbling crypto empire and the collapse of stablecoin issuer Terra (LUNA). It is

according to the new report According to The New York Times, most of the sell orders for the stablecoin TerraUSD (UST) during the collapse came from Bankman-Fried trading firm Alameda Research, which was also betting on LUNA.

According to the report, prosecutors are looking for potential evidence of market manipulation that Bankman-Fried may have fraudulently influenced the price of UST and LUNA.

In May, the UST, designed to maintain a peg to the US dollar through a mechanism that increased the supply of LUNA whenever the price fell, collapsed, driving the price of the algorithmic stablecoin well below $1. , Terra and LUNA down with it.

UST and LUNA did not recover. Multiple crypto companies, including digital asset lending platform Voyager Digital and Celsius Network, and crypto hedge fund Three Arrows Capital (3AC) filed for bankruptcy in the aftermath of Terra’s collapse, further hurting the industry. gave

FTX itself filed for bankruptcy last month after its native asset, the FTX Token (FTT), collapsed, forcing the company to stop customer withdrawals.

During the bear market, Bankman-Fried has also been accused of mishandling client assets by funneling billions of dollars worth of funds from FTX user accounts into Alameda. Bankman-Fried said he didn’t mix the funds on purpose.

Bankman-Fried’s investigation is still in its early stages, according to the report, and investigators are trying to figure out what happened to the beleaguered crypto exchange platform and how it’s connected to Terra’s downfall. I am planning to track down the

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