Beleaguered protocol Terra found an unlikely ally in CZ after new allegations surface that the UST depegging was an inside job.
- Coindesk Allegations Against Terra
- CZ Defends Terra; Others Speak Out
Coindesk Allegations Against Terra Inside Job
Earlier this week, Coindesk Korea had reported a bombshell of a story that didn’t get the bombshell treatment. The story, which centered around allegations that Terra Luna had attacked itself in order to depeg their UST stablecoin, didn’t get much traction, even from the flagship Coindesk.
The story seemed pretty solid. After all, it included chain analysis from Uppsala Security that apparently proved that the wallet linked to the attack originated from a Terra developer. In addition, it was confirmed to Coindesk Korea by South Korean authorities investigating the Terra Luna ecosystem collapse.
Beyond that, even as a theory, it didn’t seem too far-fetched. One could understand the motivation potentially for wanting to orchestrate an attack, especially if you’re looking for an exit plan. Not to mention, Do Kwon had already been accused of inter-protocol hijinx just days before this latest round of allegations. Things were adding up, it seemed.
Nevertheless, additional coverage was scant, at least until yesterday when Coindesk finally reported the story. However, there are some who still dispute the findings.
Lost a lot of respect for CoinDesk after seeing this. They are doubling down on the nonsense rumour that the Curve UST seller (‘Wallet A’) who triggered the depeg is actually TFL, and thus TFL caused the depegging. Their analysis is plain wrong. https://t.co/lw9XY6c6FGTrendingNow That Elon Musk’s Twitter Deal Is On The Rocks, Is Terra Next?
— FatMan (@FatManTerra) June 17, 2022
CZ Defends Terra
Back on June 14th when the Coindesk Korea story first dropped, FatmanTerra took to Twitter to defend Terra against the allegations. “If true, this would mean TFL intentionally caused the depegging. But it’s not true – it’s total nonsense.” He pointed out that the wallet is likely to belong to the crypto exchange KuCoin.
FatmanTerra, you’ll recall, was the man behind the recent allegations that Terra founder Do Kwon had orchestrated a scheme using Terra ecosystem tokens to fund his exit. Suffice it to say, he’s no fan of Do Kwon or Terra at this point. So it was surprising, to say the least, to see him come to Terra’s defense.
Even more surprisingly, CEO of Binance Changpeng Zhao (CZ) also chimed in. “Based on our analysis, this report is wrong. Not defending Terra, I have criticized them heavily. Just pointing out a mistake. Cunningham’s law. The address in the article does not seem to belong to Terra,” CZ said, before also adding, “I am reasonably confident that our analysis is more accurate than the reporters.”
As CZ points out, he has “criticized them heavily” going as far as referring to their decisions as stupid. So his chiming in sure does help the case. However, the Binance CEO doesn’t specify who the wallet belong to, or backup the claim that it’s KucCoin’s.
Interestingly, the original medium post released by Upsalla Security that detailed the accusations did acknowledge they are investigating the claims made by FatmanTerra that the wallet belongs to KuCoin.
“EDIT: We understand there has been claims in the community that “terra13s” may belong to an exchange: KuCoin. Our team is in the process of verifying. However, the flow of funds and facts laid out in this report does not change. ” Masalla Blog.
In other words, Masalla believe that whether or not that is KuCoin’s wallet, doesn’t change the facts, being that Terra attacked itself. Apparently they have a part 2 coming out so you’ll have to stay tuned for that.
Until then, FatmanTerra seems to think not much will come of another apart, at least judging from this quote on the current report. “I have debunked this rumour here – the fraudulent ‘blockchain analysis report’ & CoinDesk articles stem from the fact that these ‘crypto journalists’ (good one) cannot tell the difference between a private entity and an exchange hot wallet.”
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