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    Gemini Slam, Citadel Securities, BlackRock Accusations of involvement in the UST collapse on social media

    A conspiracy theory that began on 4chan and was amplified by Cardano founder Charles Hoskinson has been met with swift denials by all parties.

    Did UST collapse because of a shadowy conspiracy involving the same cast of characters from the GameStop short squeeze? Or was it because of a structural problem with the nature of stablecoins?

    Bad news for those who believe the former: Everyone named in this conspiracy theory has come out with swift denials.

    • While BlackRock manages cash reserves for USDC, it said in a public statement it doesn’t trade UST.
    • Likewise, Citadel Securities has publicly stated that it does not trade in stablecoins.
    • Gemini said in a tweet that it has made no such loan as claimed in the conspiracy theory.
    • The conspiracy theory alleges that BlackRock and Citadel borrowed 100,000 bitcoin from Gemini and swapped 25% for UST. Then the two companies dumped the UST and BTC crashing Luna and the price of bitcoin.
    • Charles Hoskinson, the founder of Cardano and co-founder of Ethereum, amplified this evidence-free narrative on Twitter before deleting the tweet.
    • Meanwhile, crypto hedge fund Arca has told its partners that it is doubling down on UST as it believes the algorithmic stablecoin will ultimately recover and maintain its peg.
    • Luna is currently trading at 0.41 cents while UST is at 0.68 cents.

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