Mystery of Terra Collapse Deepens With Possible FTX Role Raised
- US looks to see if Alameda spurred drop, New York Times says
- Terra founder says what’s done in darkness will come to light
The latest twist in the downfall of crypto maven Sam Bankman-Fried is prompting a reexamination of the implosion of the Terra algorithmic stablecoin ecosystem that wiped out around $40 billion in market value earlier this year.
US prosecutors are said to be investigating Bankman-Fried, the founder of collapsed crypto exchange FTX and its sister trading platform Alameda Research, regarding his possible involvement in orchestrating the death spiral of TerraUSD (UST) and its affiliated token Luna, according to a report in the New York Times citing people with knowledge of the matter. Separately, Bloomberg News reported that FTX’s new CEO and bankruptcy lawyers met this week with Manhattan federal prosecutors investigating the failed exchange.