Swiss asset manager GAM Investment denies $3Billion LUNA/UST rescue talks

GAM Investments has moved to quell fake news reports that claimed the Swiss asset manager would invest some $3 billion to aid in the recovery of the Terra ecosystem, including LUNA and TrueUSD (UST) stablecoin.

An announcement published on May 12 claimed that the firm was engaging in talks with Terraform Labs to assist in recovery attempts after Terra’s algorithmic stablecoin UST lost its $1 peg.

Cointelegraph reports that the press release was fabricated.

GAM’s head of communications and investor relations Charles Naylor categorically labeling the release as fake news.

Terra’s founder Do Kwon and his team released a proposed recovery strategy for the LUNA ecosystem midweek which involved burning $1.4 billion UST while staking 240 million LUNA tokens in an effort to stem the devaluation of the UST $1 peg.

A day later, LUNA validators took a decision to take the network offline as the volatility of the LUNA/UST pair provided the potential for further governance attacks.

Cryptocurrency exchange Binance took the decision to suspend LUNA/BUSD and UST/BUSD on its spot trading platform following the halting of the Terra blockchain.