- Analysts have investigated the Terra LUNA crash from May 2022 and suspect it could be an inside job.
- The US SEC and South Korean watchdogs continue their investigations as a firm discovers a wallet that is implicated in UST de-pegging.
- LUNA 2.0 price struggles to recover; analysts expect Terra’s new chain token to make a comeback.
As financial watchdogs launched an investigation into the collapse of Terraform Lab’s sister tokens, LUNC(previously LUNA) and UST, new findings implicate the firm, implying the de-peg was an inside job. A wallet associated with the de-peg of TerraUSD likely belongs to Terraform Labs.
Terra LUNA crash, an inside job?
Following the colossal crash of LUNC(previously LUNA) and UST, regulators and financial watchdogs have launched an investigation of Terraform Labs, and co-founder Do Kwon. The US Securities and Exchange Commission (SEC) and South Korean authorities have pursued their investigation, and new findings could aid the process.
An investigation by Uppsala Security, Decentralized Solutions for Cyberspace Security Technology, revealed that Terraform Labs managed the wallet behind the attack.
A wallet associated with the de-pegging of algorithmic stablecoin UST has been identified and labeled as “Wallet A.” The firm suspects that said wallet has a link to Terraform Labs, and that the wipeout of nearly $40 billion in market value after the LUNA-UST collapse was an inside job.
The firm revealed that one address implicated in the initial run-up to UST decline and considered responsible for de-pegging was owned or controlled by Terraform Labs (TFL) or the Luna Foundation Guard (LFG), or related parties.
Further, the investigation revealed accounts that were linked to the incident, some addresses on Binance and Coinbase that transferred TerraUSD (UST), USDC, and USDT between each other.
Debunking the LUNAtic conspiracy!
Despite the launch of #Terra2, the fall of $LUNA & $UST continues to raise questions both within & outside the #Terra ecosystem.️ Our research team dived in the events prior to the Terra collapse. We have answers: https://t.co/cR4rXeqtIx
— Uppsala Security (@UPPSentinel) June 14, 2022
