Monday, July 15, 2024
HomeEntertainmentBinance CEO CZ calls CoinDesk Korea “Wallet A” Terraform Labs report incorrect

Binance CEO CZ calls CoinDesk Korea “Wallet A” Terraform Labs report incorrect

Changpeng “CZ” Zhao, the CEO and Founder of Binance, who has always been vocal about the Terra issue and has often criticised the group behind the initiative, claiming that the article criticising Terra for purposely changing the TerraUSD algorithms is false. 

Earlier this week, CoinDesk Korea published the results of a blockchain analyst firm, Uppsala Security. A blockchain transaction that led to the downfall of Terra’s UST stablecoin has been related by a South Korean research firm to the ecosystem’s major creator, Terraform Labs.

In a tweet on June 18, CZ refuted the “Wallet A” data. According to CZ, the claim accusing Terra of driving the fall of their algorithmic stablecoin TerraUSD ($UST) is incorrect. Furthermore, he stated that the address mentioned in the article does not correspond to Terra, as alleged by Uppsala Security and Coindesk Korea. He tweeted:

“Based on our analysis, this report is wrong. I am not defending Terra, I have heavily criticised them. I’m just pointing out a mistake. Cunningham’s law. The address in the article does not seem to belong to Terra. ” 

According to CZ, Uppsala made no move in its report to identify a potential purpose or justification for the trade. However, Terraform Labs executives did not respond to inquiries for comments.

 

Uppsala Security investigation of ‘Wallet A’

Uppsala Security examined Terra wallets and identified the Ethereum wallet, which is known as “Wallet A- 0x8d47f08ebc5554504742f547eb721a43d4947d0a”. It is one of the major addresses whose activities contributed to UST values deviating from their targeted $1 peg.

On May 7, Wallet A swapped over 85 million USTs to another dollar-linked stablecoin, USDC, according to blockchain data. It occurred after Terraform pulled over more than 150 million USTs from the pool. Furthermore, there are quite a number of additional wallet addresses associated with Terra that also perform transactions centred around “Wallet A.”

Wallet A and Binance transaction records

As per the report, “Wallet A” has a thorough transaction record with Binance. The report refers to that wallet’s previous transactions, which show that it often sends large quantities of UST to Binance.

On May 7,  Wallet A exchanged over 85 million UST to another dollar-linked stablecoin, USDC. It happened after UST prices plummeted below $1 immediately after these transfers, whereas Uppsala attributed to decreasing liquidity on the pool Curve. Simultaneously, a recently bought USDC of Wallet A was transferred to Coinbase.

Prices of UST plummeted below $1 almost soon after these transactions, which Uppsala attributed to decreased availability on the Curve pool. Simultaneously, recently bought USDC of Wallet A was transferred to Coinbase. Terraform eliminated about 150 million UST out of a liquidity provider upon this lending platform Curve.

The results were presented with the South Korean authorities, where Terra had a significant partly following in parts to its Korean inventor Do Kwon. According to CoinDesk Korea, the office of Seoul Southern District Prosecutors is “monitoring the movement of problematic wallets and currencies” and is informed of the wallets mentioned in the article.

 Read More:

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

11 + 17 =

- Advertisment -

Most Popular