2023-7-20 17:50 |
Terraform Labs (TFL), the developer of the failed Terra blockchain, wants to subpoena bankrupt FTX for relevant documents it could use to defend its case against the U.S. Securities and Exchange Commission (SEC), according to a July 19 court filing.
In February, the SEC sued the blockchain developer and its former CEO, Do Kwon, alleging that their fraudulent activities and market manipulation led to the collapse of Terra/LUNA tokens.
However, the firm has consistently maintained that the Terra USD (UST) depeg was caused by a “coordinated ‘short’ attack by third parties” who targeted the stablecoin and its ecosystem, causing around $40 billion in losses.
To prove its case, the Terra blockchain developer wants FTX to provide documents showing wallet addresses, trading accounts, and records of transactions involving the “sales/offers of large volumes of cryptocurrencies” it developed, including UST and LUNA.
The firm specifically stated that it wants FTX to release Jump Trading wallets showing its trades of UST and LUNA between May 1 and May 31, 2021, and May 1 to May 31, 2022. Additionally, it wants the bankrupt firm to produce other short sellers’ trading accounts and wallets between March 1 to May 31, 2022.
“This evidence is in the Debtors’ possession, custody, and/or control. TFL seeks information from the centralized FTX International and US Exchanges about wallets used by Jump Trading LLC to trade UST or LUNA on these exchanges.”
Chris Amani, TFL’s new CEO, also filed a supporting motion arguing that publicly available order book information showed that short sellers used FTX-related accounts to submit massive sell orders at the beginning of the attack on UST. Amani added:
“Publicly availably blockchain data also shows that wallets identified as involved in the attack transferred the proceeds of their sales of UST to FTX exchange deposit wallets.”
As a result, TFL wants the Bankruptcy Court to allow it to subpoena documents from FTX International and its U.S. subsidiary, FTX US. If granted, the firm wants the immediate release of these documents because its trial would begin by November 30.
The post Terraform Labs requests to subpoena docs from bankrupt FTX in SEC case defense appeared first on CryptoSlate.
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