- Terraform Labs dumped $1 billion UST and is accused of destroying the UST peg.
- The curve pool was weakened by TFL, says FatManTerra.
- Terra’s massive dump and the $2.7 billion that was removed via Degenbox contributed to the collapse.
FatManTerra analyzes data compiled by another anonymous analyst by the name of Cycle22 on Twitter. The report reflects what happened when Terraform Labs dumped $450 million in UST in April 2022. The cryptic investigator revealed that TFL suddenly began depleting hundreds of millions of UST just days before the devaluation.
FatMan Terra took to Twitter to accuse the Terraform Labs team of being responsible for the May falls of Terra USD (UST) and Terra (LUNA), using new on-chain data revealed by the anonymous analyst Cycle22.
Furthermore, FatMan Terra said, Do Kwon and his crew appeared to have created Terra USD (UST) out of thin air using their LUNA tokens. Hence, no real value was attached to this increased supply of US currency.
Therefore, Terra’s (LUNA) doom was a matter of when rather than why. The addresses connected with Terraform Labs’ bots began transmitting UST in bulk to Curve Finance (CRV) pools in mid-April. This process caused the collapse of the whole ecosystem, not a third-party attack, as suggested by numerous publications.
In addition, he transmitted 47,000 Bitcoins (BTC) from the reserve money to the Jump Crypto trading business without logging them. As a result, the crypto analyst believed that the firm’s participation in the UST depeg should be thoroughly scrutinized. The analyst stated that:
I firmly believe international investigations will help bring some form of closure given enough time. The world needs to send a strong message – fraud of this scale cannot and must not go unpunished. The same goes for SBF.
Concluding his thread the crypto analyst finally revealed, “Oh, and how do we know it was TFL that dumped all that UST? They accidentally admitted it in their own audit. People can lie, but the blockchain can’t.”
The new information adds to the overwhelming evidence against Terraform Labs and Do Kwon, who is currently on the run and wanted in South Korea.
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