- Their wallet held UST in the Anchor Protocol
- And then he exchanged 85 million UST for USDC, causing problems in the liquidity pool
Igor Igamberdiev, head of research at Wintermute, believes that large trading company Jane Street may be involved in the collapse of Terra UST.
Early last May, news came out that Jane Street had borrowed 25 million USDC from BlockTower broker. To do this, they used their pool of permitted lending. As a result, Igamberdiev identified three addresses associated with Jane Street. One of them (the most interesting in our case) is called Wallet A.
So, first, this address exchanged 85 million UST for USDC, which unbalanced the UST/3CRV Curve pool. After 2 weeks, the same wallet borrowed $25 million and then transferred them to the Coinbase wallet.
The address in question earned 84.5 million USDC from the depegging of UST, Igamberdiev summarizes. He noted that the wallet had no other interactions other than these deposits. This makes it highly likely that it belongs to the same owner.
However, the head of Wintermute does not accuse the company of malicious intent. They could do it without realizing all the risks and consequences. But Terraform Labs and its leader, Do Kwon, will be tried to the fullest extent of the law. The United States has recently joined the charge.
Interestingly, Sam Bankman-Fried, Caroline Ellison, and several other ex-FTX employees once worked for Jane Street.
