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Terraform ecosystem member FatMan commented on data compiled by analyst Cycle22 on what happened when Terraform Labs sold $450 million worth of UST in April 2022. The researcher highlighted that the organization began to dump hundreds of millions of UST in the days leading up to the devaluation.
New data reveals the main reason for the depegging of the UST in May. In the 3 weeks leading up to the depeg, the entity released over $450 million worth of UST to the open market. 4 days after their last sale, UST began to collapse.
What is the organization? This is Terraform Labs. Details below.
FatMan Terra added that Do Kwon and his team created Terra USD (UST) from nothing using their LUNA tokens. Therefore, the collapse of the Terra cryptocurrency (LUNA) was a matter of time for a well-known reason.
In addition, they transferred 47,000 bitcoins (BTC) from reserve money to the Jump Crypto trading business without registering them. According to the analyst, this fact should be carefully studied:
I firmly believe that international investigations will help close the case in some form. The world must send a clear message: Fraud of this magnitude cannot and must not go unpunished. The same goes for Sam Bankman-Fried.
Concluding his thread, the cryptanalyst asked: “How do we know that it was TFL who dumped all these USTs? They accidentally admitted this during their own audit. People can lie, but blockchain can’t.”
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