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As the days are passing and investigations are moving further, Terraform Labs seems to become the main culprit behind the fall of UST stablecoin and eventually Terra (LUNA) network
Since the market has witnessed the collapse of Terra (LUNA) network following its UST stablecoin losing parity with US dollar, investors all around the world went doubtful and skeptical about cryptocurrencies. This came as quite a surprise that even an algorithmic stablecoin like UST of Terra network could depegged on fiat currency US dollar. It became a matter of curiosity and soon investigations have also started considering the volume of loss, tens of billions of US dollar, that fall of Terra ecosystem collapse has done.
The ongoing investigations has now come up with all new exposure claiming that the company Terraform Labs (TFL), that is known to be behind the fallen Terra ecosystem is also behind the collapse of network;s native UST stablecoin. These insights came from the reports that stated that investigators of the matter have linked the parent company of Terra (LUNA) ecosystem, now named as Terra Classic (LUNC) to the attack on UST stablecoin that made it losing its peg with USD.
The investigators of the matter belong to the news outlet and prominent blockchain security firm, Uppsala. They claimed to track down the attacker of the Terra (LUNA) network almost a month after the attack using forensic techniques. In their investigations. They found out that the wallet address which is alleged to be behind the collapse of UST named Wallet A was managed by Terraform Labs itself.
Further the investigators stated that on 7th May, Wallet A was created in the Ethereum Network and they also claimed that these dates coincide with initial attempts to attack and break UST. The flow of transactions are tracked by investigators to several addresses on crypto exchanges like Binance and Coinbase while several other funds were transferred to popular decentralized finance protocol Curve.
Wallet A, as per the claims by investigators, was behind the withdrawal of $150 million worth of funds from Curve’s liquidity pool that was created to maintain the Terra network’s liquidity. The report stated that a significant amount of UST stablecoin before and after the transaction was deposited into different exchanges across the world. These actions accelerated the depegging of stablecoin and a bank run happened eventually. For the same reason, several other blockchain analysis companies also claim and point out Wallet A as the wallet of the attacker that is said to be Terraform Labs itself.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
