US federal prosecutors are investigating former FTX CEO Sam Bankman-Fried (SBF) for his possible manipulations in the Terra crisis.
The cryptocurrency market continues its long-term bear trend. Also during this bear period, there were many stories of bankruptcies and collapses. In particular, the Terra and FTX collapses were the factors that led to the crash of the market. The pressures created by the global economy also affected the crypto sector, which is called a risky investment area. Dollar outflows and crypto sales began to weigh on the stock markets. In the midst of all these processes, US prosecutors brought up the Terra issue. Prosecutors believe ex-CEO of FTX, SBF, may have manipulated the Terra collapse.
Former FTX CEO Sam Bankman-Fried May Be the Architect of the Terra Crisis
According to the New York Times, Sam Bankman-Fried (SBF), former CEO of FTX, may have manipulated Terra ecosystem products. Prosecutors are conducting an investigation on these allegations.
SBF has made statements on the subject in the past. SBF stated that it was not aware of any market manipulation and did not intend to engage in market manipulation. SBF’s manipulation investigation is included in FTX investigations conducted globally.
TerraUSD (UST) and Terra Luna (LUNA) collapsed due to a glitch on the stablecoin side. As part of the investigation, it will be examined whether SBF has manipulated these two tokens.
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