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Terraform Labs had $3.6 billion in stablecoins potentially used to manipulate prices

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One more revelation could put the co-founder of Terraform Labs, Do Kwon, in trouble with justice. That’s because new allegations point out that the collapse of the UST stablecoin may have been programmed; an inside job.

The allegations point out that Terraform Labs had enough assets to manipulate the market. In fact, the research found that the company had around $3.6 billion in USDT and UST stablecoins.

As a result, the funds may have been used for money laundering and price manipulation, according to the indictment.

The research was done by CoinDesk Korea in conjunction with blockchain security firm Uppsala Security. They used blockchain data to investigate the collapse of the Terra network.

In addition, they state that they conducted additional data analysis to track the flow of undisclosed funds linked to the UST.

As the article explains, CEO Do Kwon released details of using funds to “save” UST’s peg. However, when examining the data, analysts discovered a lot of “hidden” money.

More problems for Do Kwon

According to the experts, these were values ​​that were neither in Terraform Labs nor Luna Foundation Guard’s wallets. The two funds they found had about $3.6 billion in UST and USDT.

The article describes the analysis process in detail, as well as lists all the data the researchers used.

Looking at the new finding, Uppsala Security CEO Patrick Kim said authorities should be on the lookout.

According to him, investigators need to verify the internal data of centralized exchanges such as Binance, Huobi, Kucoin and Coinbase.

The investigation, however, may not result in compensation for investors. After all, many funds have already been lost.

Furthermore, the investigation is being conducted in Korea and citizens of other nations would not be entitled to the estate.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
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