BlackRock and Citadel denied trading Terra’s UST stablecoin

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Hedge fund giant Citadel Securities and asset manager BlackRock have adamantly denied involvement in trading TerraUSD (UST).

The giants denied the rumors in separate emails sent to Forbes. The statements follow mounting claims that financial giants had borrowed 100,000 bitcoins from the Gemini cryptocurrency exchange. Claims continue that they used BTC to buy UST, only to dump the assets, causing the market to crash and wiping out over $25 billion in LUNA’s underlying market value.

Gemini denied the rumors

In response to the bubbling rumours, Gemini posted a tweet denying the loan of 100,000 bitcoins.

“We are aware of a recent story that suggested Gemini made a 100K BTC loan to large institutional counterparties which reportedly resulted in a sell-off of LUNA. Gemini made no such loan.”

Gemini

Following Gemini’s remarks, a source familiar with Citadel revealed that the company “does not trade stablecoins, including UST.” BlackRock issued a strong comment that:

“The rumors that BlackRock had a role in the collapse of UST are categorically false. In fact, BlackRock does not trade with UST.”

Logan Koffler, BlackRock spokesperson

The source of the entire rumor came from a tweet that was retweeted over a thousand times. Although BlackRock’s name was not on the list, the name soon caught on.

The rumors were not completely put to rest, as there was a small margin of doubt due to the company’s recent entry into the cryptocurrency market. But as of now, there has been no objective evidence to back up the tweet.

Citadel received a $1.15 billion investment from Sequoia Capital and Paradigm, a cryptocurrency venture capital firm that hopes to leverage the company’s technology to lend legitimacy to cryptocurrency markets.

Conversely, black rock recently became the top cash reserve manager for another stablecoin, USDC, which is run by Circle and Coinbase. He also made a strategic investment in Circle’s most recent $400 million fundraising round.

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