It has been nine months since the Terra (LUNA) crypto project suffered a catastrophic collapse in May 2022. In just one week, Terra’s algorithmic stablecoin, UST, failed to keep its exchange rate pegged to the value of the US dollar. As a result, both the price of UST and LUNA took a steep plunge, with UST losing around 99% of its value. It is speculated that there were a number of factors that contributed to the massive cryptocurrency crash as $60 billion was wiped out of the cryptocurrency space.
Mystery behind the “A Wallet”
After the LUNA crisis, several post-mortem examinations were performed and a certain “A card” emerged as the prime suspect; demonstrated to have played a significant role in the UST disengagement event.
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According to Igor Igamberdiev, head of research at Wintermute, “Portfolio A” exchanged 85 million UST for USDC, which caused an imbalance in the UST/3CRV curve pool, which eventually led to the collapse of the Earth (LUNA) ecosystem. going by your to look forthere is a good possibility that the wallet associated with last year’s UST depeg could belong to the commercial firm Jane Street Group.
Igamberdiev’s study of the wallet’s transactions reveals that there is a “good possibility” that the wallet is associated with Jane Street. On May 3 of the previous year, Clearpool announced that Jane Street had borrowed 25 million USDC from BlockTower using its authorized lending pool. Based on this information, Igor was able to identify three addresses that belonged to the trading company; one of these addresses, nicknamed Wallet A, was of great relevance.
Multiple Wallets, Same Owner?
Two weeks later, the same wallet made a second $25 million loan before transferring the funds to an active Coinbase wallet. However, Igamberdiev mentioned that the Coinbase wallet had been credited with 84.5 million USDC by the UST unlinker before receiving the loan amount. And moreover, what is a surprise, Igor found that the wallet had no interactions other than these deposits; therefore clearly indicating that the wallet could belong to the same entity.
Before receiving $25M from Jane Street, this Coinbase wallet received 84.5M USDC from the UST depegger after the fateful exchange
This wallet has not had any other interactions other than the two deposits mentioned
Therefore, it is highly likely that they belong to the same entity. pic.twitter.com/vOz934hlzm
— Igor Igamberdiev (@FrankResearcher) February 28, 2023
Furthermore, Igor noted that the wallet – allegedly owned by Jane Street – held UST on LUNA’s Yield “Anchor” Dapp for a month, which did not necessarily indicate that the entity had nefarious intentions. As of this writing, Jane Street has yet to provide a response to any of these allegations. However, the cryptocurrency crash precipitated by the LUNA disaster set off a year of cascading financial disasters that have yet to subside.
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The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.