Analysis Firm Links the Terra Developer to the Wallet That Caused the UST Implosion
- Uppsala came to the conclusion that all of these wallets likely shared the same owner or were controlled by a single entity after looking into their links and repeated transactions with one another.
- After looking into each of these wallets, their relationships, and their frequent transactions with one another, Uppsala came to the conclusion that they either had the same owner or were controlled by a single body.
- Following these deals, the price of UST nearly instantly dropped below $1, which Uppsala said was due to less liquidity in the Curve pool.
This is big news. If the analysis firm is correct, and the Terra developer is behind the UST implosion, there are sure to be serious repercussions. Let’s take a closer look at what happened.
According to the analysis firm, transactions from a wallet linked to the lead Terra developer were responsible for the death spiral that took down UST. This is a serious allegation, and if true, it could have far-reaching consequences.
The specifics of what transpired are still somewhat murky, but it seems clear that something fishy was going on behind the scenes. The lead Terra developer may have had ulterior motives in triggering the UST implosion, though what those motives might have been remains a mystery.
A South Korean research company linked Terraform Labs, the ecosystem’s lead creator, to a blockchain transaction that contributed to the demise of Terra’s UST stablecoin.
This week, Uppsala Security, a blockchain analysis company, released its results, which were first published by CoinDesk Korea.
The findings of the report have been shared with legal authorities in South Korea, where Terra had a huge following. The Seoul Southern District Prosecutors’ Office is “tracking the flow of problematic wallets and coins” and is aware of the wallets flagged in the report. The prosecutors’ office is investigating whether any crimes were committed, such as embezzlement or breach of trust.
Do Kwon, Terra’s Korean founder remains popular in South Korea. His social media accounts have hundreds of thousands of followers, and he is often featured in news articles and on TV shows. Despite the recent problems with Terra, many Koreans remain loyal to Do Kwon and believe that he will turn things around.
The Terra Debacle Continues
The future of Terra remains uncertain. The company has been banned from operating in several countries, including China and Japan. It is not clear how long Do Kwon will continue to be able to operate in South Korea. If he is convicted of any crimes, he could face prison time and be forced to give up his stake in Terra.
A probable reason or justification for the transaction was not mentioned by Uppsala in its report, and representatives of Terraform Labs did not respond to queries for comment.
With the release of the report, some have called for Do Kwon and other members of Terra’s leadership team to be held accountable. One commenter on a popular crypto forum said
It is completely unacceptable that the people who created this mess are not being held responsible . Someone needs to be held accountable for these lost funds.
Ultimately, it remains to be seen what actions will be taken against Terra and its leaders in light of the findings of this report. However, it is clear that there is a significant amount of anger and frustration amongst those who have lost money as a result of its collapse.
What this all means for the future of Terra and UST is still uncertain, but one thing is for sure: this story is far from over.
Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.
