Wintermute Shorting Helped Spur TerraUSD Crash, Terraform Says

A shorting strategy deployed by one of crypto’s biggest market makers played a role in a $40 billion wipeout of stablecoin TerraUSD last year, Terraform Labs alleged in UK court filings.

Terraform and its fugitive co-founder Do Kwon, accused of a years-long fraud by the US for misleading investors to buy stablecoin TerraUSD, won a UK court ruling on Friday forcing Wintermute Trading Ltd. to disclose documents related to the trading strategy to boost its defense in a US case with the Securities and Exchange Commission.

Wintermute’s Chief Executive Officer Evgeny Gaevoy and Chief Operating Officer Marina Gurevich ...