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Terra Labs’ $3.6 billion in USDT and UST might be used to change prices or launder money on exchanges like DeFi


In general, foundations that are in charge of building or running blockchain projects are open about the size and use of the virtual assets they issue. The first plan for distributing virtual assets will be explained in a white paper, and details about how they can be used will be shared from time to time. Is that the case with Kwon Do-Terra, hyung’s which was made by Terraform Labs?

Unknown large amounts of money were found

CEO Kwon Do-hyung has been sharing information about how things like LUNA (tera), UST (tera USD), and BTC (bitcoin) are used through his SNS or Terra Foundation. For example, if UST (Tera USD) defegging (a difference in the value of one dollar), the foundation will use the money it has to defend the price. But after looking at the on-chain data, it was found that Terraform Labs and Luna Foundation Guard wallets don’t make it clear where the coins came from or how they were used (LFG).

This is how slush funds worth $3.6 billion (about 4.6 trillion won) in UST (Tera USD) and USDT were found (Tether). In particular, it was found that the funds may have been used to manipulate the price of the old LUNA (now called LUNC) and launder money in DeFi (Decentralized Finance) and centralized exchanges.

After the June 14 news, a second question was raised!

On May 7, blockchain security company Uppsala Security and CoinDesk Korea used on-chain data forensics to look into why the Terra project failed. On June 14, the first article to track the flow of coins around the wallet (0x8d47f08ebc5554504742f547eb721a43d4947d0a) was published. Analysis companies from all over the world pointed to this article as the beginning of the Terra collapse. (For ease of use, this wallet is called “Wallet A.”)

So, it was confirmed that USDT, USDC (US dollar coin), and UST worth $7.459857681 (about KRW 9.502 trillion) were put into two Binance wallets, Terraform Labs and Luna Foundation Guard. It was shown through data on the blockchain that it was a wallet owned or run by (LFG). In the end, we found a clue that helped us figure out whether or not the Terra incident was a secret.

Uppsala Security and CoinDesk Korea looked at more on-chain data to track the flow of about $3.6 billion in unknown funds.

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