Asset management and securities giant BlackRock has completely denied its involvement in TerraUSD (UST) trading.
The giants denied the rumors in emails sent to Forbes.
Earlier there were rumors circulating on the internet that two financial giants borrowed 100,000 Bitcoins from crypto exchange Gemini and then used BTC to buy UST for dumping, causing the market to crash and wipe out more than 25 billion dollars market value of LUNA. In another development, in response to the simmering rumors, Gemini posted a tweet denying a 100,000 bitcoin loan.
“We became aware of a recent story claiming that Gemini lent 100k BTC to large institutions, which allegedly led to the LUNA sell-off. Gemini does not lend like that.“
Following Gemini’s statements, a source close to Citadel revealed that the company “does not deal in stablecoins, including UST.” BlackRock made a strong comment that:
“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.
The origin of the whole rumor started with a tweet that was retweeted over a thousand times. Although BlackRock’s name was not on the list, the name quickly gained attention.
Many believe this rumor to be true due to the recent BlackRock company getting into crypto. But so far, there has not been any corroborating evidence for this tweet.
Citadel has received a $1.15 billion investment from Sequoia Capital and Paradigm, hoping to leverage the business’s technology to give the crypto market legitimacy.
In contrast, BlackRock recently became the primary reserve manager for another stablecoin, USDC, which is handled by Circle and Coinbase. The giant also made a strategic investment in Circle’s most recent $400 million funding round.