Crypto mayhem: $3.5 bn worth Bitcoin in Terra reserve just evaporated

Advertisement



The global crypto mayhem wiped out last week worth $3.5 billion — created to defend and support the TerraUSD (UST) stablecoin which saw a total crash — and no one has any idea how such a large sum of funds disappeared.

Nearly 80,394 Worth $3.5 billion were purchased by the Luna Foundation Guard, the non-profit organization set up to promote the growth of the Terra ecosystem this year, according to Blockchain analytics firm Elliptic.



CoinDesk reported that while untold billions in value and wealth were lost when those reserves proved inadequate to prevent a “depegging” last week, what no one knows is what happened to those reserves and where they are now.

Terra Labs CEO Do Kwon tweeted that they were “currently working on documenting the use of the LFG BTC reserves during the depegging event.

Advertisement

“I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, who have been devastated by UST depegging,” Kwon said in a tweet thread.

The UST coin is designed to retain a value of one US dollar at all times but was depegged last week, and fell to just 17 cents. Luna’s value collapsed in one of the most stunning crypto crashes ever recorded.

Advertisement

In total, over $15 billion in cryptocurrency value was wiped after the TerraUSD stablecoin collapsed.

In the case of Luna Foundation Guard, Elliptic followed the money to major exchanges Gemini and Binance.

According to the Blockchain analytics firm, 52,189 BTC was moved to a single account at US crypto exchange Gemini, via several transactions.

The remaining 28,205 Bitcoin in Terra’s reserves were “moved in their entirety, in a single transaction, to an account at the cryptocurrency exchange Binance”.

“It is not possible to identify whether these assets were sold or later moved to other wallets,” Tom Robinson, co-founder and chief scientist at Elliptic, was quoted as saying.

“All we can see is it going into these exchanges,” Robinson told CoinDesk.

The whereabouts of $3.5 billion still remain a mystery.

Advertisement

“Neither I nor any institutions that I am affiliated with profited in any way from this incident. I sold no Luna nor UST during the crisis,” according to Kwon, Terra Labs CEO.

–IANS

na/dpb

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard,

Digital Editor





Source link

Leave a Comment

Your email address will not be published.