When UST lost its peg overnight, Quadriga co-founder and crypto trader Michael Patryn bought the dip. According to PeckShield, he made $760,000 on the deal.
As the stablecoin TerraUSD (UST) shattered its linkage with the dollar yesterday, Michael Patryn, the co-founder of the now-defunct exchange Quadriga CX, profited.
According to PeckShield’s transaction analysis, Patryn’s Ethereum address associated with the ENS name Sifu.eth completed many UST trades in the last 24 hours, earning him $760,000.
UST is an algorithmic stablecoin that, through its link with the token Luna, aims to maintain a peg to the US dollar (LUNA). However, it has lost its peg in recent days as significant holders have rushed to sell the tokens.
The Luna Foundation Guard, a non-profit organization dedicated to supporting UST, utilized its bitcoin assets to maintain the peg. Despite this, on Monday, the token traded as low as $0.61 to the dollar.
While others were concerned that the token might collapse in value, Patryn gambled that it would eventually return to parity with the dollar. He exchanged $2.8 million of tether (USDT) for 3.88 million UST when it was approaching its lowest point, according to transaction analysis by PeckShield.
Following that, the value of UST began to rise toward the dollar level, reaching as high as $0.94. Patryn profited $760,000 by selling the UST back for $3.56 million in USDT during the rally. After that, he transferred some of the funds to the Avalanche blockchain.
Patryn, originally known as Omar Dhanani, rose to prominence in the business as one of the co-founders of Quadriga, which went bankrupt and was found to be entirely devoid of its users’ cryptocurrency. Following that, he became a cryptocurrency trader known as Sifu.
He co-founded a project named Wonderland under this alias, but was forced to resign after his true identity was uncovered.
Patryn claims to have made over $80 million from trading and investing in the last two years, directing his Twitter followers to a crypto wallet linked to him.
He transferred considerable funds to Tornado Cash, a mixing service designed to disguise transactions, after quitting Wonderland. This implies that, while some of his funds remain in his public address, it is unclear where the majority of his funds are now housed.
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