LUNA’s Collapse Exposed: Is FTX the Mastermind Behind the Chaos?

Share This Post

Terra Luna Classic Records 21% Drop Despite 1.6 billion LUNC Burn What’s Next for LUNC Price (1)

The post LUNA’s Collapse Exposed: Is FTX the Mastermind Behind the Chaos? appeared first on Coinpedia Fintech News

Former Binance CEO Changpeng Zhao (CZ) has hinted at some exciting details about his upcoming book, revealing that he contemplated a possible connection between FTX, Three Arrows Capital (3AC), and the infamous Terra (LUNA) crash of 2022. Though he refrained from making direct accusations, his comments have started a new speculation about the events that shook the crypto market.

Did FTX Play a Role in the LUNA Collapse?

CZ responded to a post by an FTX creditor, @Mbottjer, who revealed that 3AC had recently outbusted proofs indicating that FTX had liquidated $1.53 billion worth of its assets just two weeks before 3AC collapsed. The claim, which has been approved by a judge, adds another layer to the complex web of crypto failures that rocked the industry.

CZ called this an “interesting turn of events” and admitted it was news to him. He then questioned whether there was a link between FTX and the collapse of Terraform Labs’ LUNA token and UST stablecoin in May 2022. That crash sent shockwaves through the market, dragging down Bitcoin and other cryptocurrencies.

Was it Planned?

In response to CZ’s remarks, Crypto analyst MartyParty stated that he had already revealed on-chain evidence showing Celsius and FTX withdrawing massive amounts of UST from the liquidity pool at the exact moment the market was vulnerable. According to him, both firms executed $200 million UST withdrawals, triggering the stablecoin’s depeg and ultimately causing the LUNA meltdown.

His statement adds weight to theories that powerful players in the crypto space may have intentionally orchestrated the collapse. If true, it would mean the 2022 market crash wasn’t just a result of bad risk management but a coordinated attack.

CZ’s Book Will Address These Controversies—But With Caution

A user on X suggested that the entire FTX scoop deserved a documentary series, to which CZ responded that he had thought about this connection while writing his book. However, he made it clear that he found no concrete evidence, saying, “I didn’t want to speculate; there were rumors, but I never saw hard evidence.”

CZ has already completed a 114,000-word draft of his book and has printed a physical copy. However, he believes it will take three times the effort to refine it before it’s ready for publication. Given the controversies surrounding FTX, 3AC, and Binance itself, the book could provide an insider’s perspective on the crypto industry’s most chaotic years.

What’s Next for CZ’s Book?

With the crypto world still recovering from the aftermath of the 2022 crashes, CZ’s book is expected to shed light on key industry events from his point of view. Whether it will contain major revelations or remain a personal reflection, the anticipation is growing. For now, CZ remains careful with his words, ensuring that his account sticks to facts rather than speculation.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Major leadership shift at HK Asia Holdings as Bitcoin Magazine takes the helm

In a significant move that solidifies Bitcoin Magazine’s presence in Asia, HK Asia Holdings (01723HK) has announced key leadership changes effective March 14, 2025 This development marks a

Top Altcoins to Invest in as Pump.fun Mania Fizzles Out

The meme coin frenzy that took the crypto world by storm is now showing signs of exhaustion  Platforms like Pumpfun, which allowed anyone to launch altcoins in minutes, are experiencing a sharp

Bitcoin Breaches 12-Year Support Line Against Gold – Is The Bull Run Over?

As Bitcoin (BTC) struggles amid the latest crypto market pullback – failing to decisively break past the $84,000 resistance – gold (XAU) continues its impressive rally, soaring to a

Pakistan forms new ‘Crypto Council’ to regulate blockchain and digital assets

The government of Pakistan has established the Pakistan Crypto Council (PCC) to oversee the integration and use of blockchain technology and digital assets into the nation’s financial landscape

Stablecoins Thrive as Crypto Stumbles: A $4.23B Growth Spree in 2 Weeks

While the crypto market contracted over the past two weeks, the stablecoin sector has ballooned by $423 billion since March 1, defying the broader trend Digital Dollars Dominate With Over 8% of

Ethereum Headed For $1,250 Or Ready For A Reversal? Analysts Weigh In

According to a recent post on X by crypto analyst Ali Martinez, Ethereum (ETH) may be heading to $1,250 as it risks breaking down from a parallel channel However, other analysts suggest a trend