Lawyers Do Kwon explained the collapse of the UST “attack” with the help of FTX


“Coordinated short attack” involving FTX led to depegu curated by Terraform Labs (TFL) UST algostablecoin. This is stated in the petition of the lawyers of the organization.

Representatives requested information from FTX as part of the defense of TFL and its founder Do Kwon in a lawsuit SEC.

Lawyers want to oblige the crypto exchange to transfer certain information about accounts, wallets and assets.

“Data is critical to protection. […] TFL experts will be able to analyze the transactions of those who opened short positions”, the statement says.

The court will consider the petition of the organization on August 2.

In February 2023, the SEC indicted TFL and Do Kwon for orchestrating a multi-billion dollar securities fraud. In particular, the Commission referred TerraUSD (UST) and the LUNA token to them.

In September 2022, South Korea issued an arrest warrant for Do Kwon and five other employees of the organization on charges including violations of capital markets laws.

On March 23, Montenegrin police arrested an entrepreneur while trying to fly from Podgorica airport to Dubai using forged documents. In May, he and former TFL CFO Han Chang-jung pleaded not guilty.

South Korea called on Montenegro to send Kwon home. The United States is also seeking extradition for the head of Terraform Labs, where he has been charged with fraud by the SEC and the New York federal prosecutor’s office.

On June 19, a court in Podgorica found the TFL founder guilty of forging documents while trying to leave Montenegro. He was sentenced to four months in prison.

Previously, the Swiss government blocked about $26 million in bitcoin and other cryptocurrencies associated with Terraform Labs and Kwon.

Recall that former TFL COO Chris Amani will take over as acting CEO.

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