Federal Prosecutors Are Looking into the FTX and Terra Relationship


US federal prosecutors have put former FTX CEO Sam Bankman-Fried (SBF) under investigation for his possible manipulations in the Terra crisis.

The crypto currency market continues its long-term bearish 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 collapse of the market.

The pressures created by the global economy have also affected the crypto sector, which is referred to as a risky investment area. Dollar outflows and crypto sales began to suppress stock markets. In the midst of all these processes, US prosecutors raised the issue of Terra. Prosecutors believe that SBF, the former CEO of FTX, may have committed manipulation in the Terra collapse.

Former FTX CEO Sam Bankman-Fried May Be the Architect of the Terra Crisis

According to the New York Times, former FTX CEO Sam Bankman-Fried (SBF) may have manipulated Terra ecosystem products. Prosecutors are conducting an investigation into these allegations.
SBF had made statements on the subject in the past periods. SBF had stated that it was not aware of any market manipulation and did not intend to commit market manipulation. The SBF’s manipulation investigation was included in the FTX investigations conducted globally.

TerraUSD (UST) and Terra Luna (LUNA) had experienced a collapse due to a glitch experienced on the stablecoin side. Within the scope of the investigation, it will be examined whether SBF has committed a manipulation against these two tokens.

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