What will happen to Terra’s LUNA 2.0 price after claims that Terraform Labs was behind UST collapse
|- 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!
— Uppsala Security (@UPPSentinel) June 14, 2022
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
Debunking the LUNAtic conspiracy!
— Uppsala Security (@UPPSentinel) June 14, 2022
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 traced the flow of funds from UST to MIM and MIM to USDT. Starting November 2021, wallets controlled by Terraform Labs swapped billions of dollars worth of UST into MIM and eventually into USDT.
The cyberspace security tech firm studied how funds were transferred to exchange accounts, some of which were controlled or owned by Terraform Labs founders and the firm. The firm is yet to identify the final details concerning the use of the funds within the exchanges or crypto trading firms; they have identified potential leads for further investigation.
The following were identified as wallets of interest:
- Wallet A: 0x8d47f08ebc5554504742f547eb721a43d4947d0a
- Wallet A(T): terra1yl8l5dzz4jhnzzh6jxq6pdezd2z4qgmgrdt82k
- Binance user account Memo: 104721486 (terra1ncjg4a59x2pgvqy9qjyqprlj8lrwshm0wleht5)
- Binance user account Memo: 100055002 (terra1ncjg4a59x2pgvqy9qjyqprlj8lrwshm0wleht5)
- Depositors:
- terra13s4gwzxv6dycfctvddfuy6r3zm7d6zklynzzj5 (LUNC DAO)
- terra1t0an4m6t47rp3mj57rdfzw6dpd3lw8erxjppgw
- Interchange Wallet A: 0xa046a8660e66d178ee07ec97c585eeb6aa18c26c
- Exchange Wallet A: 0x21ec2dbb3bfd2210a84bbc924466a70becddd572
Uppsala is examining the actions taken by these wallets until the day of the Terra LUNA crash and the connection between these addresses through on-chain data.
LUNA 2.0 price could make a comeback soon
Analysts at FXStreet have evaluated the LUNA 2.0 price trend and predicted a comeback in the token’s price. Analysts identified a key level to watch before LUNA witnesses a bullish breakout. If LUNA 2.0 price hits $3.5, it will confirm a bullish breakout and an uptrend in the token of the new Terra chain. For more information, watch this video:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.