Asset manager BlackRock and hedge fund giant Citadel Securities have denied trading the troubled TerraUSD (UST), in separate emails sent exclusively t

BlackRock And Citadel Deny Trading Cratering Stablecoin

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2022-05-12 00:30:06

Asset manager BlackRock and hedge fund giant Citadel Securities have denied trading the troubled TerraUSD (UST), in separate emails sent exclusively to Forbes.

The comments come on the back of rapidly spreading rumors the financial giants had jointly borrowed 100,000 bitcoin (worth about $3 billion at today’s price) from cryptocurrency exchange Gemini to purchase UST, only to dump the assets causing the market to collapse and wiping out more than $25 billion in the underlying LUNA market value.

Following on a tweet from Gemini posted earlier today, which denied making a 100,000 bitcoin loan to any large institutional counterparties, a Citadel source familiar with the allegations confirmed the company “does not trade stablecoins, including UST.” BlackRock went even further.

“Rumors that BlackRock had a role in the collapse of UST are categorically false,” said BlackRock spokesperson Logan Koffler. “In fact, BlackRock does not trade UST.”

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