Wallet Behind Crypto Crash Revealed

Crypto project Terra (LUNA) experienced its catastrophic collapse nine months back in May of 2022. The result was both UST and LUNA experiencing precipitous decline and UST losing 99% of its value.

Speculation that there were a number of factors contributing to the massive crypto crash wiping out $60 billion from the space.Numerous postmortem examinations have been carried out since with one finding of “Wallet A” emerging as the primary suspect playing a significant part in the UST de-pegging.

Igor Igamberdiev Head of Research at Wintermute pointed out Wallet A swapped 85 million UST for USDC causing the imbalance in the UST/3CRV Curve pool eventually leading to the collapse of Terra LUNA ecosystem. His research discovered there is good possibility the wallet associated with the depeg of UST might belong to the trading firm Jane Street Group.

Jane Street Group borrowed 25 million USDC from BlockTower via its permissioned lending pool, Igor identified three addresses belonging to the trading firm one dubbed as Wallet A was a major relevance.

Same wallet took out a second $25 million two weeks later before moving the funds to a Coinbase hot wallet which had been credited with 84.5 million USDC by the UST de-pegger prior to receiving the loan amount.