According to a report published on Wednesday, federal prosecutors in the United States are investigating FTX founder Sam Bankman-Fried for the manipulation of two cryptocurrencies earlier this year. They have begun an investigation to determine whether or not SBF manipulated the prices of TerraUSD and Luna to benefit FTX and its associate trading firm, Alameda Research.
Was Terra FUD Planned?
However, there’s one more aspect to this whole drama. It’s being alleged that, SBF’s Alameda possibly hired a Twitter influencer who would later go on to spread lies about the Terra (LUNA) project and its founder Do Kwon.
RT: THE FACTS
• SBF/Alameda took down $UST, federal prosecutors now taking action against them for market manipulation.
• FatMan was hired by this group to cover their tracks by spreading disinfo about DK + $LUNA.
Guess how many will buy $LUNA when everyone learns the truth? pic.twitter.com/K4H7vDJKEx
— 🔥⚛️ 🅻🆄🅽🅲 🅳🅰🅾 ⚛️🔥 (@LUNCDAO) December 10, 2022
Going by the Twitter handle @fatmanterra, the profile has repeatedly spoken against the crypto project and about its eventual demise, pinning the faults on Do Kwon and his team, Terraform Labs. The profile, however, remains anonymous.
Read More: Terra Do Kwon Reacts To Court Rejecting Arrest Warrants
The pseudonymous “FatMan”, first gained prominence when he publicly claimed that he had “proofs” of Do Kwon’s malpractice in the infamous UST depeg.
FatMan vs Do Kwon
Although, many claim that his proofs have been debunked by other community members, the profile still sticks to his views and has continually spoken against the Terra founder.
🧵 I’ve been using this account to document the Terra fraud, but there’s a lot of info and it can be hard to parse. Here’s a simple summary thread (linking to past tweets) outlining the key milestones in Do Kwon’s destructive path of fraud – proving malice, greed, and crime.
— FatMan (@FatManTerra) September 15, 2022
The self-proclaimed “cryptocurrency & finance researcher” has even denied the allegations of SBF playing a role in the UST debacle of May 2022.
Instead, his latest tweet targets Terraform Labs for dumping their own $450 Million UST into the market — thus leading to the cryptocurrency’s eventual demise.
🧵 New blockchain data reveals the root cause of the May UST depeg. In the 3 weeks leading up to the depeg, one entity dumped over $450m of UST on the open market. 4 days after their last sale, UST started collapsing.
That entity? None other than Terraform Labs. Details inside. pic.twitter.com/aFfzgpBZ5A
— FatMan (@FatManTerra) December 6, 2022
Do Kwon Opens Up
The Terra founder believes that Genesis Trading provided around $1 billion in UST to Bankman-Fried’s Alameda Research before the stablecoin’s depeg in order to carry out the infamous trade.
He further went on to state:
I think the time has come for GenesisTrading to reveal if they provided the $1B UST shortly before the crash to SBF..The large currency contraction that UST went through in Feb 2021 was started by Alameda. What’s done in darkness will come to light.
Read More: Do Kwon Explains How SBF And Genesis Led Terra-LUNA Crisis
In a statement to the Times on Wednesday, Bankman-Fried said he was not aware of any “market manipulation” and definitely never planned to engage in any kind of market manipulation.