Terraform Labs Owned Wallet Behind UST Collapse, New Report Claims


Key to take

  • A new report has suggested that the portfolio that is considered the main culprit for the collapse of Terra in May could belong to Terraform Labs or the Luna Foundation Guard.
  • The report links the portfolio to several Binance accounts and wallets allegedly belonging to the Luna Foundation Guard and LUNC DAO, a Terra 2.0 validator allegedly created by Do Kwon.
  • LUNC DAO denied the report’s claims, alleging that the wallet labeled as belonging to the DAO is in fact KuCoin’s hot wallet.

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A new investigation report from blockchain security company Uppsala Security and CoinDesk Korea suggested that Terraform Labs may have directly caused Terra to collapse during the second week of May.

Terraform Labs may have caused Terra to collapse

The collapse of $ 40 billion from Earth could have been internal work, according to a new report.

CoinDesk Korea and the blockchain security firm Uppsala Security issued a set research report Tuesday alleging that the portfolio named by several independent entities as the main culprit in the collapse of Terra may be owned or controlled by Terraform Labs or the Luna Foundation Guard.

According to the report, the Ethereum portfolio begins 0x8d christened “Portfolio A,” which was previously identified as the initial trigger for UST’s “spiral of death” event in two independent post-mortem reports from the creator of cryptocurrency markets. Jump Crypto and the blockchain analysis company NansenHe received all his funds from an Earth wallet from the beginning terra1y called “Wallet A (T).” The report then alleges that Uppsala Security used in-chain analysis to connect Wallet A (T) to various Binance accounts and wallets belonging to the Luna Foundation Guard and LUNC DAO, an Terra 2.0 validator allegedly created by Terraform Labs CEO Do Kwon , following the Earth report. collapse. Summarizing his findings, CoinDesk Korea wrote:

“Combining the above findings discovered through chain forensic investigation, Binance user ‘s’ 104721486′ wallet, LFG wallet, LUNC DAO wallet, wallet A (T) and wallet A that UST received from Wallet A (T ) are all that lead to the conclusion that the portfolios are owned by the same owner or managed by a single group.

“This means that Terraform Labs or LFG carried out a financial transaction that caused Terra to collapse on its own,” the local media concluded.

Based on the independent chain analysis of Jump Crypto, Nansen and Uppsala SecurityWallet A caused the UST death spiral on May 7 by exchanging $ 85 million in UST for USDC in the decentralized exchange curve just 13 minutes after Terraform Labs had retired $ 150 million in UST liquidity from the UST / 3CRV curve group. The lack of UST liquidity in the Curve group and the unprecedented size of the transaction pushed UST away from its $ 1 target, scaring the market and triggering a cascade of large UST exchanges and liquidity withdrawals that further aggravated the situation. According to Jump Crypto, Wallet A’s $ 85 million UST exchange is the largest transaction in that particular Curve group to date.

Agree with CoinDesk KoreaAccording to the report, the South Seoul District Attorney’s Office, which is leading the South Korean investigation into the Earth’s implosion, is aware and is already analyzing the “suspicious flow of funds” from portfolios related to portfolio A. “We are tracking the flow of problematic portfolios. and coins using a chain forensic technique, “a prosecution official told the newspaper.

LUNC DAO denies the allegations

CoinDesk KoreaHowever, the allegations of LUNC DAO and a pseudonymous cryptographic detective who identifies himself as FatManTerra on Twitter have questioned the allegations made in the report by the blockchain analysis companies.

“I found a big hole in his report (based on research by Uppsala Security, a chain analysis company) that makes everything false,” FatManTerra said. he wrote on Twitter today, arguing that the report was “nonsense” because the portfolio was starting terra13, labeled as belonging to LUNC DAO, actually belongs to the KuCoin cryptographic exchange. “That’s not LUNC DAO’s wallet! That’s KuCoin’s hot wallet! Makes the whole report nonsense, because obviously two addresses aren’t linked simply by virtue of receiving money from KuCoin,” he said. he wrote.

LUNC DAO also denied the report’s claims, alleging that the alleged portfolio did not belong to the organization. “These shrewd investigative journalists say that LUNC DAO owns the KuCoin Exchange portfolio (used by millions of people) and therefore Do Kwon created LUNC DAO,” he said. he wrote on Twitter, citing the report.

FatManTerra and LUNC DAO did not provide evidence that the land13 belongs to the KuCoin exchange and Crypto Briefing Could not independently verify the true owner of the portfolio at the time of publication.

Disclosure: At the time of writing, the author of this piece had ETH and several other cryptocurrencies.

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