September 29, 2022

BlackRock and Citadel declared no involvement in the collapse of the UST. The price of LUNA collapsed to $0.3

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Asset manager BlackRock and hedge fund Citadel Securities deny involvement in the collapse of the algorithmic stablecoin UST and cryptocurrency LUNA.

Before that, there were rumors on the net that the companies borrowed 100,000 BTC from the Gemini exchange and exchanged 25,000 BTC for UST. They allegedly contacted the head of Terraform Labs, Do Kwon, and said that they were going to sell a lot of bitcoins, offering him to buy a large batch of cryptocurrency at a discount for UST.

Then BlackRock and Citadel allegedly dumped all their assets, which led to the collapse of UST, LUNA and the entire market.

It was distributed, among other things, by the head of the IOHK, Charles Hoskinson. He later deleted the tweet and stated that the rumors were not true.

The Gemini exchange said it did not provide a loan of 100,000 BTC to institutional counterparties.

BlackRock called the rumors about its involvement in the collapse of UST “categorically wrong” and noted that the company does not trade the asset.

Citadel also stated that the company does not trade stablecoins, including UST.

At the time of writing, the price of UST is in the region of $0.6.

The price of LUNA collapsed to $0.3.

Recall that in early May, UST lost its peg to the US dollar against the backdrop of an outflow of assets from Anchor. On May 9, users withdrew more than 3.3 billion UST from the protocol.

The price of the algorithmic stablecoin and LUNA has been falling rapidly for several days in a row.

Do Kwon presented a plan to restore the price of UST, but this did not hold back the collapse of quotations.

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