CZ Denies “Wallet A” Information Regarding Terraform Labs

According to reports, the findings of a South Korean analytics company have suggested that “Wallet A” is linked to the main developer of the ecosystem, Terraform Labs. However, CZ believes that this report is false based on the analysis of Binance.

Information about “Wallet A”

As mentioned in an earlier Coincu News article, CoinDesk Korea reported the findings of blockchain analytics firm Uppsala Security earlier this week. A blockchain transaction that contributed to the demise of Terra’s stablecoin UST has been reported by a South Korean analytics firm affiliated with the ecosystem’s lead developer, Terraform Labs.

Uppsala Security conducted an analysis of the Terra wallet and flagged the Ethereum wallet “0x8d47f08ebc5554504742f547eb721a43d4947d0a” (referred to as “Wallet A”) as one of the key addresses whose action helped push the price of UST off the expected $1 peg.

Blockchain data shows that Wallet A exchanged over 85 million USTs for another dollar-linked stablecoin, USDC, on May 7 – just minutes after Terraform removed more than 150 million USTs from the pool. liquidity on lending platform Curve in a planned move. In addition, there are a number of other wallet addresses related to Terra that also conduct transactions around “Wallet A”.

According to the report, there is a detailed transaction history of “Wallet A” related to Binance. The report points to that wallet’s transaction history showing that it regularly sends huge amounts of UST to crypto exchange Binance.

The findings have been shared with legal authorities in South Korea, where Terra enjoys a large following in part due to the Korean founder Do Kwon. The Seoul Southern District Prosecutors’ Office is “monitoring the flow of problematic wallets and coins” and is aware of wallets flagged in the report, according to CoinDesk Korea.

CZ denies the information about “Wallet A”

CZ has denied the information surrounding “Wallet A” through a post on his twitter.

Specifically in the article CZ shared, he said that the above report is wrong compared to Binnace’s previous analysis of Terraform Labs. The denial is not made to defend Terra because he has also previously condemned Terra’s behavior before the collapse of LUNA-UST.

CZ also said that according to Binance’s analysis, the address mentioned in the report does not appear to belong to Terraform Labs. CZ also said that he trusts Binance’s analysis.

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