The algorithm behind defunct stablecoin TerraUSD was always supposed to keep the token pegged to the U.S. dollar. It turns out it had a little help.
A complaint by the Securities and Exchange Commission filed Thursday claimed that on at least one occasion in May 2021, TerraUSD (UST) was propped up not by its algorithm but by the intervention of a “third party,” which agreed to purchase massive amounts of UST to restore the $1 peg.
