They transfered 52,189 BTC between May 7th (When UST dipped to $0.9978, indicating the algo peg was under stress) and the 10th, and another 33,206 when UST hit $0.75. After the insiders were paid off, Terra was free to go to zero.
Presumably we'll only find out what actually happened when Do Kwon is in jail and people start testifying against each other in return for lighter sentences.
They also shipped tens of millions of dollars in BTC to another group to "assist" them with movement of funds (I want to say but am willing to be corrected, that the amount was actually ~$80M).
The group ... didn't do that. They kept the BTC and said "sucks to be you".
> What was initially thought to be a market-triggered event turned out to be a clear case of fraud, with former CEO Kwon at the epicenter. According to on-chain data, In the 3 weeks leading up to the depeg of the TerraUSD (UST) stablecoin, one entity dumped over $450 million of UST on the open market. Four days after the last sale, UST started collapsing. The entity behind the massive dump was none other than Terraform Labs.
This is a very thorough and well-researched article that explains currency pegs in general and the UST collapse in particular.
It's one thing to try an experiment and fail. It's quite another to mislead investors and not fulfill commitments. I imagine this paragraph will come back big time during the inevitable criminal and civil trials:
> It was here that LFG stepped in by allegedly selling their Luna and Bitcoin reserves to buy up UST in an attempt to stop the bleeding. However, as the price of Luna and UST fell, so did the price of Bitcoin as the LFG allegedly sold tens of thousands of their bitcoin. (Note: It is still unknown if they actually sold the bitcoin).
No public evidence of that as of now, but it could definitely be true. The interesting thing is that it doesn't really matter, those "insiders" would have dumped the coins in the open market breaking the peg even further. So yeah, maybe LFG could have sold the bitcoins a bit better in the open market, but I don't think that it would have made a difference.
This has a high "Jesse, What the Fuck Are You Talking About" energy. The reason Terra fell is because most of the transactions that were supposed to assure its value were kept in a secret double accounting system. And that brought BTC down ~50% which shouldn't happen if it's not held up by magical behind the scenes accounting. There's no 3rd party integrity here and it's not been appreciating for weeks now.
Well alice let everyone know they are using anchor, and allowed people to transfer UST out of the wallet. Stablegain pretended to do more sophesitcated defi and misled customers that they were using USDC as the main coin, and money was made from lending USDC to overcollaterlized positions in bluechip tokens(BTC, ETH)
The thoughts are that someone borrowed lots of BTC and UST, started selling UST to depeg, then started selling BTC as they tried to regain the peg, the joint selling of BTC lowered the price making it harder, actually impossible,to regain the peg.
I mean that was the expected outcome and now people are like “proof of the expected outcome!?!”
Following months of outcry about the unsustainable nature of Terra Luna, Do Kwon through his foundation tried to partially collateralize the stablecoin with bitcoin, with a goal of buying up to $10bn of bitcoin. He got $3-5bn (at the time, price changed a lot), and this prolonged the confidence system for one additional month.
And then it imploded and sold the collateral, of course it was partial collateral so it failed to do anything in a bank run.
So it doesnt matter whether we get records from exchanges or not. Nothing different would happen. People want to see Do Kwon have more reasons to have charges against him, but there’s no need to attribute it to malice, everything can be explained by incompetence already.
So someone sells 100k BTC with no price impact, then causes the whole kerfuffle with UST to impact the price of BTC, which slips 30% in the face of the UST people selling like 10k BTC, then manages to buy 100k BTC to cover, again with no trace or price impact?
Onchain data shows that only 285K of the transferred $320k was returned (a week later), suggesting they might actually have been trading those funds on Gate and took a loss.
I have no idea how this passed Coinbase's KYC limits, there must be much more to the story here. I can't imagine that it was a typical self-serve trade via their web UI, he surely developed some form of OTC relationship with Coinbase to pull off buying this much BTC and successfully withdrawing it.
~$144m of May 2021 BTC turned into ~$221m in December at the time of seizure, if they decide to realize the gains.
He didnt. UST placed in Terra Anchor for the promised 20% was not staked or locked. You could withdraw at any time. Really, this site needs to stop choking on the crypto ignorance. This has been going on for more than 13 years now.
It's still unclear who initiated the original attack which set this whole thing off, but whoever did that likely took home billions exactly because they understood how this system works.
From the looks of it, there were at least two distinct events around 9am Pacific on Tuesday, and again on Wednesday, where someone very intentionally made massive moves to trigger cascading liquidations. The rest of the damage was caused by a significant loss of faith in the system, followed by a mad dash to the exits.
The people running Terraform were doing a lot better before shit hit the fan. Maybe Do Kwon was looking for an exit or something, but I doubt it was an inside job. Maybe I'm wrong about that. I basically started ignoring Terra/UST the moment I realized how they were trying to back their stable coin. There are enough good projects in the space, wasting energy ruminating about obviously dumb concepts is a liability.
> Terraform Labs was one such entity. But its protocol – which aimed to ensure TerraUSD's price would remain stable – failed miserably in part thanks to its underlying blockchain being unable to scale as scared investors sent demand for transactions soaring.
Was this an actual technical problem or was this a bank run?
They transfered 52,189 BTC between May 7th (When UST dipped to $0.9978, indicating the algo peg was under stress) and the 10th, and another 33,206 when UST hit $0.75. After the insiders were paid off, Terra was free to go to zero.
Presumably we'll only find out what actually happened when Do Kwon is in jail and people start testifying against each other in return for lighter sentences.
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