Blockchain analyst Wintermute believes the wallet linked to last year’s UST crash may have been owned by Jane Street.
The wallet that was instrumental in decoupling TerraUSD (UST) from the dollar last year may be owned by trading firm Jane Street. This opinion was expressed by the head of the Wintermute research department, Igor Igamberdiev, in a Twitter thread.
Based on an analysis of the transactions, Igamberdiev said the wallet could be linked to Jane Street. It is known that on May 3 last year, Jane Street borrowed 25 million USD Coin (USDC) from BlockTower using a permitted credit pool. Based on this, the expert identified three addresses belonging to the trading company; one, dubbed Wallet A, looked suspicious.
Two weeks later, the same wallet again borrowed 25 million USDC, and then sent them to the wallet of the Coinbase crypto exchange. The wallet in question received 84.5 million USDC as a result of decoupling UST from the US dollar. As Igamberdiev noted, there were no other interactions with the wallet other than these deposits, which means that it “is very likely owned by the same legal entity.” UST was stored on the wallet for a month.
The stablecoin TerraUSD collapsed in May 2022, depriving investors of tens of billions of dollars. UST relied on the native Luna coin, which belongs to the same ecosystem. Investors were offered an income of 20% per annum for staking UST in the Anchor protocol, which acted as a kind of crypto bank. As a result of the failure of the algorithm and the loss of the anchor, the rates of both UST and LUNA collapsed. This led to losses of about $40 billion. In addition, the collapse of UST also led to the decoupling of other stablecoins from the dollar and a crisis in the crypto industry.
Source: bitcoinlinux.com
