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Terra's Team Allegedly Destroyed UST by Itself: Expert

Tue, 12/06/2022 - 16:57
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Vladislav Sopov
Anonymous analyst Fat Man Terra yet again de-bunks Do Kwon's narrative about an "attack" on the UST/LUNA system
Terra's Team Allegedly Destroyed UST by Itself: Expert
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Fat Man Terra shares data from another anonymous analyst who goes by the @Cycle_22 handle on Twitter. It shows how Terraform Labs mass-dumped $450 million in UST in April 2022 — and how it ended.

UST peg was allegedly destroyed by Terraform Labs

Fat Man Terra took to Twitter to allege that the Terraform Labs team is behind the May collapse of Terra USD (UST) and Terra (LUNA) based on new on-chain data published by the Cycle 22 analyst. 

In general, as Fat Man Terra explains, it looks like Do Kwon and his team just minted Terra USD (UST) out of thin air with their LUNA tokens. No real U.S. dollar value was backing this new supply.

That's why the collapse of Terra (LUNA) was a matter of "when", not "why". In mid-April, the addresses associated with Terraform Labs' bots started sending UST en masse to Curve Finance (CRV) pools.

This process triggered the collapse of the entire ecosystem, not a third-party attack, as it was claimed before by various sources. 

Why was Anchor Protocol dangerous?

Moreover, the correlation between Terraform Labs and its addresses identified by analysts was confirmed by Terra's team itself in its audit.

Fat Man Terra recalls that the users of Anchor Protocol (ANC) became the hardest-hit project during the collapse. The DeFi vehicle with 19.5% in APY on UST deposits was aggressively shilled by Kwon and his colleagues.

Also, he sent 47 Bitcoins (BTC) of the reserve funds to the Jump Crypto trading firm without logs: as such, the firm's role in the UST de-peg should be investigated.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)