Uppsala Security Reveals $3.6 Billion Used By Do Kwon’s TFL To Manipulate UST Price: Details

Ndianabasi Tom — Wed, 29 Jun 2022 17:47:28 +0000

A flow of undisclosed large-scale funds transactions has been tracked down to Do Kwon and TerraForm Labs. These slush funds amount to about $3.6 billion (about 4.6 trillion won) in UST and USDT, according to Uppsala Security and CoinDesk Korea.

Claims are that the funds would have been used for money laundering and/or price manipulation on both DeFi platforms and centralized exchanges, during the unusual collapse of the Terra ecosystem tokens – old LUNA (now LUNC) and UST.

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Uppsala Security Investigates Do Kwon’s TerraForm Labs

The Luna Foundation Guard (LFG) and TerraForm Labs have always disclosed the size and operational usage of their virtual assets holdings from time to time.

Previously, CEO Do Kwon noted that the Luna foundation will utilize its crypto holdings such as BTC to defend the price of UST in any circumstance of depegging. Unexpectedly, when UST lost parity to $1, the foundation’s holdings could not salvage the situation.

The unfortunate occurrence for investors then triggered an investigation of the Luna Foundation Guard, Do Kwon, and TerraForm Labs by Uppsala Security together with CoinDesk Korea.

With the use of on-chain data forensic techniques, the blockchain security firm made shocking discoveries. The first finding which was reported on June 14 revealed that the wallet which caused the fall of UST belonged to Do Kwon’s TerraForm Labs. The investigation team then concluded that it was an insider attack.

The report said;

“It turned out that the wallet that is being pointed out as an ‘attacker’ by causing a transaction that caused a fatal blow to the algorithm-based stablecoin project Terra is actually a wallet managed by Kwon Do-hyung’s Terraform Labs. This means that the Terra collapse, which caused tens of trillions of won in investor damage, was caused by internal actions, not external attacks. It has been confirmed that the prosecution, which is investigating the Terra incident, has also confirmed this situation and is investigating.”

“Uppsala Security and CoinDesk Korea intensively analyzed the transaction history of the wallet (0x8d47f08ebc5554504742f547eb721a43d4947d0a), which is pointed out as an attacker wallet by various analysis companies around the world. (For convenience, this wallet is referred to as ‘Wallet A’,” the report added.

Undisclosed Funds Movements by TerraForm Labs

Per another report shared on Tuesday, the blockchain security firm Uppsala Security alongside CoinDesk Korea underwent an additional investigation into the old Terra LUNA crash that happened on May 7.

Again, a suspicious fund flow worth $3.6 billion in UST and USDT was found in a wallet related to Do Kwon’s Terraform Labs.

Per the report, the funds were moved through Defy service Abracatabra and Curve (0xa046a8660e66d178ee07ec97c585eeb6aa18c26c), Binance Exchange Ethereum Wallet (0x21ec2dbb3bfd2210a84bbc924466a70becddd572), and Binance Exchange Terra Wallet (terra1ncjg4a59x2pgvqy9qjyqprlj8lrwshm0wleht5, memo: 100055002).

A Case of Insider Attack?

With the available exhibits presented by Uppsala Security, the blockchain security firm holds that the collapse of the Terra ecosystem tokens (UST and LUNC) that landed investors in mega losses was an insider attack, plotted within Do Kwon’s TerraForm Labs and other accomplices.

Interestingly, it appears the hacktivist group known as Anonymous holds the same belief. Anonymous recently vowed to bring Do Kwon to justice over the LUNC and UST crash incident.

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The post Uppsala Security Reveals $3.6 Billion Used By Do Kwon’s TFL To Manipulate UST Price: Details appeared first on Times Tabloid.

Terra Whistleblower Pinpoints Major Hole in New Report That Accuses Do Kwon’s TFL of Depegging UST

Solomon Odunayo — Tue, 14 Jun 2022 18:20:15 +0000

FatMan, a member of the Terra Research Forum, who has been acting as the whistleblower for the Terra community, has berated the extensive research reportedly conducted by Uppsala Security, a chain analysis firm, in collaboration with CoinDesk Korea, to dig deeper into the major cause of the crash of the Terra ecosystem.

The report published by CoinDesk Korea showed that a wallet linked to Do Kwon’s Terraform Labs (TFL) and Luna Foundation Guard (LFG) directly or indirectly initiated the liquidity crisis on Curve Finance, which led to the depegging of TerraUSD (UST) and the crash of Terra (LUNA).

According to FatMan, the report suggests that Terraform Labs intentionally caused the de-pegging of TerraUSD (UST). He said this is indeed not the case, concluding that the research report is total nonsense.

FatMan tweeted, “CoinDesk Korea just released the bombshell revelation that the wallet behind the UST depegging is actually owned by Terraform Labs. If true, this would mean TFL intentionally caused the depegging. But it’s not true – it’s total nonsense.”

CoinDesk Korea just released the bombshell revelation that the wallet behind the UST depegging is actually owned by Terraform Labs. If true, this would mean TFL intentionally caused the depegging. https://t.co/FPvEYjuuq1

But it's not true – it's total nonsense. (1/4)

— FatMan (@FatManTerra) June 14, 2022

Why FatMan Said the Report Is Incorrect?

According to FatMan, the major hole he found in the report renders Uppsala Security’s hard work null and void. He said the major wallet that was investigated was misrepresented.

The report links Terra’s Binance account that got an initial deposit from LUNC DAO with Wallet A because it made some huge transactions with LUNC DAO.

The major hole in the report, according to FatMan, is that Wallet A does not belong to LUNC DAO. He said it’s KuCoin’s hot wallet. So, the report is a total misrepresentation, according to FatMan.

FatMan noted:

“The news is wildfire. It’s already big in Korea, and the data found is being used by Korean prosecutors. It’s on Huobi Global as well. But, I found a major hole in their report (based on research from Uppsala Security, a chain analysis firm) making the whole thing untrue.

“Read their conclusion. The general idea is, allegedly, Terra’s Binance account (that got an initial deposit from LUNC DAO) is linked to Wallet A, the Curve UST dumper, because it also transacted heavily with LUNC DAO. But the one simple thing they missed is…

“That’s not LUNC DAO’s wallet! That’s KuCoin’s hot wallet! It makes the whole report nonsense, because obviously two addresses are not linked simply by virtue of receiving money from KuCoin. All it means is they are both KuCoin users. Nothing sinister and nothing proven.

“PS. If you need your reports fact-checked, feel free to get in touch. I’m always here. I am disappointed that an outlet as prestigious as CoinDesk Korea would publish this without running basic checks.”