“Wallet A”, The Culprit Behind Terra’s Downfall, Is The Wallet Of Terraform Labs
A South Korean blockchain analysis firm reveals a death spiral sparked by transactions from “Wallet A” linked to top developer Terra – though any motives or reasons remain is a mystery.
What is “Wallet A”?
Uppsala Security conducted an analysis of the Terra wallet and flagged the Ethereum wallet “0x8d47f08ebc5554504742f547eb721a43d4947d0a” (referred to as “Wallet A”) as one of the key addresses whose action helped push the price of UST off the expected $1 peg.
A blockchain transaction that contributed to the demise of Terra’s stablecoin UST has been reported by a South Korean analytics firm affiliated with the ecosystem’s lead developer, Terraform Labs.
CoinDesk Korea reported the findings of blockchain analytics firm Uppsala Security earlier this week.
Uppsala, in its report, did not venture to give a possible motive or reason for the transaction, and Terraform Labs officials did not respond to a request for comment.
But the findings have been shared with legal authorities in South Korea, where Terra enjoys a large following in part due to the Korean founder Do Kwon. The Seoul Southern District Prosecutors’ Office is “monitoring the flow of problematic wallets and coins” and is aware of wallets flagged in the report, according to CoinDesk Korea.
“We have compiled our report based on publicly available online and online data, with the goal of providing evidence and leading us closer to the truth that affected members of the community worth knowing,”
Uppsala CEO Patrick Kim told CoinDesk in a WhatsApp Message.
Who is behind “Wallet A”?
Blockchain data shows that Wallet A exchanged over 85 million USTs for another dollar-linked stablecoin, USDC, on May 7 – just minutes after Terraform removed more than 150 million USTs from the pool. liquidity on lending platform Curve in a planned move.
The UST price dropped below $1 almost immediately after these transactions, which Uppsala said was due to lower liquidity on the Curve pool. Meanwhile, Wallet A’s newly acquired USDC has been sent to Coinbase, one of the largest cryptocurrency exchanges by trading volume.
“There is nothing to say about what happened to the funds transferred to these Binance and Coinbase wallets, whether they are still there or have been moved elsewhere,” Uppsala wrote in the report. report.
Upon further investigation by Uppsala, Wallet A’s transaction history shows that it received 85 million UST from “terra1yl8l5dzz4jhnzzh6jxq6pdezd2z4qgmgrdt82k,” a wallet address on the Terra blockchain. UST on the Terra blockchain has been converted to UST on the Ethereum blockchain through Wormhole, a swap service for exchanging tokens from one chain to another.
The wallet’s transaction history shows that it regularly sends huge amounts of UST to crypto exchange Binance. Uppsala shows that the wallet transacted with several other Terra wallets such as “terra1gr0xesnseevzt3h4nxr64sh5gk4dwrwgszx3nw” (known as terra1gr). This raises doubts at Uppsala – as terra1gr is one of the official wallets of the Luna Foundation Guard (LFG), set up by Kwon and other Terraform Labs officials to create a reserve for the protocol.” algorithm” behind UST.
According to Uppsala, in addition to terra1gr, another Terra wallet “terra13s4gwzxxx6dyjcf5m7” (referred to as terra13s) recently exchanged funds with wallets on the Binance exchange that can be linked to Wallet A. The terra13s wallet is currently one of the wallets official LUNC DAO, validator of Terra’s new Terra 2.0 blockchain, Uppsala said.
Investigation of all these wallets, their connections, and their repeated transactions with each other led Uppsala to conclude that the wallets are either owned by the same owner or are managed by a single entity.
Uppsala said the findings mean that Terraform Labs’ actions could ultimately lead to UST crashes.
“Meaning that Terraform Labs or LFG made a financial transaction that caused Terra to collapse on its own,” the team said in its report.
“Not only Wallet A but also the wallets connected to it are managed by Terraform Labs and related companies,” Uppsala’s Kim told CoinDesk.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Foxy
Coincu News
Author
News
“Wallet A”, The Culprit Behind Terra’s Downfall, Is The Wallet Of Terraform Labs
A South Korean blockchain analysis firm reveals a death spiral sparked by transactions from “Wallet A” linked to top developer Terra – though any motives or reasons remain is a mystery.
What is “Wallet A”?
Uppsala Security conducted an analysis of the Terra wallet and flagged the Ethereum wallet “0x8d47f08ebc5554504742f547eb721a43d4947d0a” (referred to as “Wallet A”) as one of the key addresses whose action helped push the price of UST off the expected $1 peg.
A blockchain transaction that contributed to the demise of Terra’s stablecoin UST has been reported by a South Korean analytics firm affiliated with the ecosystem’s lead developer, Terraform Labs.
CoinDesk Korea reported the findings of blockchain analytics firm Uppsala Security earlier this week.
Uppsala, in its report, did not venture to give a possible motive or reason for the transaction, and Terraform Labs officials did not respond to a request for comment.
But the findings have been shared with legal authorities in South Korea, where Terra enjoys a large following in part due to the Korean founder Do Kwon. The Seoul Southern District Prosecutors’ Office is “monitoring the flow of problematic wallets and coins” and is aware of wallets flagged in the report, according to CoinDesk Korea.
“We have compiled our report based on publicly available online and online data, with the goal of providing evidence and leading us closer to the truth that affected members of the community worth knowing,”
Uppsala CEO Patrick Kim told CoinDesk in a WhatsApp Message.
Who is behind “Wallet A”?
Blockchain data shows that Wallet A exchanged over 85 million USTs for another dollar-linked stablecoin, USDC, on May 7 – just minutes after Terraform removed more than 150 million USTs from the pool. liquidity on lending platform Curve in a planned move.
The UST price dropped below $1 almost immediately after these transactions, which Uppsala said was due to lower liquidity on the Curve pool. Meanwhile, Wallet A’s newly acquired USDC has been sent to Coinbase, one of the largest cryptocurrency exchanges by trading volume.
“There is nothing to say about what happened to the funds transferred to these Binance and Coinbase wallets, whether they are still there or have been moved elsewhere,” Uppsala wrote in the report. report.
Upon further investigation by Uppsala, Wallet A’s transaction history shows that it received 85 million UST from “terra1yl8l5dzz4jhnzzh6jxq6pdezd2z4qgmgrdt82k,” a wallet address on the Terra blockchain. UST on the Terra blockchain has been converted to UST on the Ethereum blockchain through Wormhole, a swap service for exchanging tokens from one chain to another.
The wallet’s transaction history shows that it regularly sends huge amounts of UST to crypto exchange Binance. Uppsala shows that the wallet transacted with several other Terra wallets such as “terra1gr0xesnseevzt3h4nxr64sh5gk4dwrwgszx3nw” (known as terra1gr). This raises doubts at Uppsala – as terra1gr is one of the official wallets of the Luna Foundation Guard (LFG), set up by Kwon and other Terraform Labs officials to create a reserve for the protocol.” algorithm” behind UST.
According to Uppsala, in addition to terra1gr, another Terra wallet “terra13s4gwzxxx6dyjcf5m7” (referred to as terra13s) recently exchanged funds with wallets on the Binance exchange that can be linked to Wallet A. The terra13s wallet is currently one of the wallets official LUNC DAO, validator of Terra’s new Terra 2.0 blockchain, Uppsala said.
Investigation of all these wallets, their connections, and their repeated transactions with each other led Uppsala to conclude that the wallets are either owned by the same owner or are managed by a single entity.
Uppsala said the findings mean that Terraform Labs’ actions could ultimately lead to UST crashes.
“Meaning that Terraform Labs or LFG made a financial transaction that caused Terra to collapse on its own,” the team said in its report.
“Not only Wallet A but also the wallets connected to it are managed by Terraform Labs and related companies,” Uppsala’s Kim told CoinDesk.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Foxy
Coincu News
Other Posts
Related Posts
News
The Bitcoin Epic Satoshi Of The 4th Halving Was Auctioned For Over $2.1 Million
News
Hong Kong Crypto ETFs Of HashKey And Bosera Completed Subscription To Launch On April 30
News
