Crypto mayhem: $3.5 billion worth Bitcoin in Terra reserve just evaporated
The global crypto mayhem last week wiped out Bitcoin 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 Bitcoin worth $3.5 billion were purchased by the Luna Foundation Guard, the non-profit organisation 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.
"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.
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 Bitcoin 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 subsequently 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.
" 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.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Coinbase suffers major outage, Binance halts Terra Luna crypto trading
IANS 13 May 2022
Leading crypto exchange Coinbase suffered a major outage amid crypto mayhem especially with the cryptocurrency Terra Luna, heightening fears among the investors.
The company said it was actively working on the...
Terra Luna Cryptocurrency Collapses 98%, Investors Lose Life Savings
IANS 12 May 2022
The dramatic crash of Terra (Luna), ranked among the top-10 most valuable cryptocurrencies, has wreaked havoc in the lives of investors who fear they will become homeless after the crypto mayhem.
Within the past 24 hours,...
Mayhem in crypto market as Bitcoin drops below US$30,000-mark
IANS 10 May 2022
The global cryptocurrency market entered its worst phase ever on Tuesday, with Bitcoin dropping below $30,000 per coin and leaving millions of investors in a panic mode.
The overall global cryptocurrency market dropped 13...
Rupee Hits All-time Low against US Dollar, More Depreciation Likely
IANS 09 May 2022
The Indian rupee extended its losses and touched an all-time low of 77.42 against the US dollar in early trade on Monday.
The Indian currency is weighed by the strength of the American currency in the overseas market and...
Free Helpline
Legal Credit