A leading crypto data analytics firm, Nansen, recently launched a special report brought outside. The report states that the demise of the TerraUSD (UST) stablecoins can be traced back to a handful of crypto wallets. These wallets withdrew huge amounts of UST on the eve of one of the darkest chapters in the history of the crypto industry.
Nansen report UST
Nansen has tracked down seven crypto wallets that withdrew large amounts of UST via the Curve platform on May 7, just before the demise of both UST and Terra (LUNA).
“Seven ‘initiating’ wallets exchanged significant amounts of UST against other stablecoins on Curve as early as the night of May 7. These seven wallets had taken significant amounts of UST from the Anchor protocol on May 7 and before that (as early as April) and bridged UST to the Ethereum blockchain via Wormhole.”
Nansen even states that the people behind these crypto wallets were up to no good. The report argues that they may have been looking for price vulnerabilities between decentralized and centralized crypto exchanges such as Battle† This could have caused UST to disconnect the link, either pegwith the US dollar lost.
“Of these seven wallets, six interacted with centralized exchanges to send more UST (allegedly to sell) or, for a subset of these wallets, to send USD Coin (USDC) swapped from the liquidity pools from Curve.”
Intent in the game?
When the link between UST and the US dollar was broken, the wallets have been working hard to take full advantage of the price difference of UST on various exchanges. Since this is a group of actors, Nansen also rejects the theory that a single ‘hacker’ carried out a successful attack on UST.
Nansen’s report is not tender. It gives substance to the rumors that there may have been deliberate intent in the demise of the Terra network.
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