LUNA: The collapse of Terra’s UST and LUNA tokens is on the agenda. While a new claim comes to the fore every day on this subject, research companies also rolled up their sleeves to learn the background of the event. Finally, leading Blockchain security firm Uppsala Security shared a study. The company’s research brought up a striking claim about the Terra collapse. Accordingly, an address on Terra called “Wallet A” has conducted suspicious on-chain transactions. This address, which exhibited suspicious behavior, belonged to someone from within the ecosystem, according to the report. Let’s examine the details together.
- 1 Terra (LUNA) collapse and allegations
- 2 Was the LUNA crash caused by an outsider or an insider?
- 3 Did Wallet A initiate the attack?
- 4 He continued his moves
- 5 Share this:
Terra (LUNA) collapse and allegations
A selling pressure erupted for LUNA in May when Terra’s dollar-pegged algorithmic stablecoin, UST, collapsed. AmkNews.com As we have also reported, LUNA’s price dropped 99.9% after the event. After that, Terra founder Do Kwon and his team kicked off UST from the project and started a new project called LUNA 2.0. However, the allegations about the collapse did not end. People continue to investigate the events that led to the loss of most of their funds.
However, giant companies and regulators such as the US SEC are also involved. Uppsala Security’s report makes solid claims that a person or group from the Terra team may have been behind the incident. In fact, this claim was not first made by Uppsala Security. Since the collapse, many organizations and individuals have been making the same claim. But now, with the company’s latest on-chain data, the theory has become much stronger.
Was the LUNA crash caused by an outsider or an insider?
In essence, Uppsala Security’s report was nothing more than examining the on-chain transactions of an address called “Wallet A”. When the collapse occurred, many people and the Terra team suggested that it was caused by WallStreet outside the ecosystem. Uppsala Security’s “Wallet A” review reinforces the claims that the Terra collapse started from within, not outside. As we previously reported, South Korean prosecutors also investigated the case. Prosecutors had argued that the collapse was not carried out by WallStreets, as claimed. Accordingly, all events started from within.
Did Wallet A initiate the attack?
In fact, what sparked the Terra crash was the loss of stability of the stablecoin UST to the dollar. However, since no entity could do such a thing on its own, eyes were looking for the culprit. As it is known, the stability of the stablecoin disappeared on May 7, 2022. Here, the address named Wallet A was created on that very day. Wallet A’s attack began at 17:32 pm Turkey time. The Terra project subsequently withdrew the $150 million worth of UST from the Curve protocol to defend the ecosystem. This move by the team initially seemed like enough to protect the ecosystem.
He continued his moves
Wallet A made a new move following the aforementioned event. This time, the address replaced 85 million UST with USDC, another dollar-denominated stablecoin, via DeFi protocol Curve Finance. Thus, the massive exchange of UST took place in as little as 13 minutes. The same address then moved the USDC assets to Coinbase, a popular exchange. Thus, he distributed huge amounts of TerraUSD (UST) to leading cryptocurrency exchanges. However, it is known that a similar event took place before the migration to Coinbase took place. As a result, all these actions of Wallet A hastened the LUNA collapse.
As the new report came to light, most of the blockchain security and research firms blamed Wallet A for the crash. Accordingly, Wallet A was an “insider trading”. This refers to an insider address. But other firms continue to suggest that Terra’s collapse is from the outside. According to this theory, the LUNA incident claims that an outside WallStreet company deliberately crashed Terra.
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