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

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).

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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.”

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.

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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.”

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Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.

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