Asset management and securities giant BlackRock and Citadel have completely denied their involvement in the trading and the collapse of the algorithmic stablecoin TerraUSD. BlackRock, Citadel Clarifies on UST Collapse Rumour According to a public statement from BlackRock which manages cash reserves for USDC, the company stated that it wasn’t involved in the collapse of the UST stablecoin. “The rumors that BlackRock had a role in the collapse of UST are completely untrue. In fact, BlackRock does not trade UST,” BlackRock spokesman Logan Koffler said. Similarly, Citadel Securities has also publicly stated that it does not trade in UST, the so-called stablecoin issued by the Terra project. Earlier there were rumors circulating on social media platforms that the two financial giants borrowed 100,000 Bitcoins from Gemini crypto exchange and swapped 25% for UST. The two companies then dumped the UST and BTC crashing Luna and the price of bitcoin. In response to the growing rumors, Gemini posted a tweet denying a 100,000 bitcoin loan. We are aware of a recent story that suggested Gemini made a 100K BTC loan to large institutional counter-parties that reportedly resulted in a selloff in $LUNA. Gemini made no such loan. — Gemini (@Gemini) May 11, 2022 Stablecoin is Not so Stable After All TerraUSD, or UST, the so-called stablecoin issued by the Terra project and pegged 1:1 to the US dollar, turned out to be not so stable after all. As ...
