What will happen to Terra’s LUNA 2.0 price after claims that Terraform Labs was behind UST collapse
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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.
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:
