BlackRock and Citadel deny involvement in UST stablecoin collapse

Asset manager BlackRock and hedge fund giant Citadel Securities have denied trading troubled TerraUSD (UST), according to Forbes.

There are rumors that the financial giantsjointly borrowed 100,000 bitcoins (worth about $3 billion at today's price) from the Gemini cryptocurrency exchange to buy UST only to drain the assets, causing the market to crash and wipe out over $25 billion of LUNA's market value.

Following a Tweet by Gemini denying a 100,000 Bitcoin loan to any major institutional counterparties. Of course, BlackRock says the same thing:

Rumors that BlackRock was involved in the collapse of the UST are categorically false, BlackRock spokesman Logan Koffler said. — In fact, BlackRock does not trade UST.

As of now, Forbes reporters have found no credible evidence to support the claims. Despite this, the first post on this topic has been retweeted over a thousand times.

As you know, in January, Citadel attracteda $1.15 billion investment from traditional venture capital firm Sequoia Capital and crypto venture giant Paradigm, which wants to use the firm's technology to boost confidence in crypto markets.

Last year, billionaire CEOCitadel Ken Griffin drew the ire of many in the crypto industry when he outbid a group of 17,000 crypto investors to buy the original copy of the US Constitution.

BlackRock recently became the main managercash reserves of another stablecoin, USDC, operated by Circle and Coinbase, and made a strategic investment in Circle's latest $400 million funding round.

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