Terraform Labs, a blockchain platform, filed an issue to the judge to order data from FTX, a bankrupt crypto exchange. It is expected that they had asked for the information which could help its defence against a lawsuit brought by the United States Securities and Exchange Commission (SEC) in February, stated Cointelegraph.
Sources revealed that on July 19, 2023, Terraform’s lawyers filed a motion against FTX’s bankruptcy case to access the company’s information about digital wallets used by short sellers between March 2022 and May 2022. Terraform expects that its stablecoin failure was a result of a coordinated attack from short sellers which might involve Alameda Research, FTX’s sister company, Cointelegraph added.
Furthermore, “To establish these defences, TFL needs Debtors’ records about wallets, accounts, and assets used to transact on the FTX International and US exchanges and sales or offers of large volumes of cryptocurrencies developed by TFL, if any, by FTX Trading and West Realm Shires Services Inc. d/b/a FTX US,” Cointelegraph concluded.
(With insights from Cointelegraph)