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Recently, Terra Research Forum member @FatManTerra found through research on chain data that Do Kwon directed and staged the UST unanchor and LUNA crash. The culprit of this explosion was actually Terraform Labs led by Do Kwon.

"Humans can lie, but blockchains can't." - FatMan

The latest on-chain data reveals the root cause of May’s UST devaluation: In the 3 weeks leading up to the depeg, one entity dumped over $450M in UST on the open market. 4 days after their last sale, UST started to crash. that entity? None other than Terraform Labs (TFL).

This heavy data compiled by the anonymous researcher @Cycle_22 (the person who discovered Hodlnaut's bankruptcy) shows that TFL suddenly started selling a total of hundreds of millions of UST in a period of time before the decoupling of UST.

TFL has been touting UST being"attack"statement. But this is fake news. In fact, TFL itself irresponsibly sold a large amount of UST in a short period of time, thereby breaking the balance of the Curve pool. This reduces liquidity and seriously jeopardizes the target's UST peg.

The final blow to UST decoupling could be delivered by anyone. Because how many big institutions own UST and might want to sell after seeing TFL run out of liquidity? Genesis, 3AC, Hodlnaut, Jump, Celsius? This list is not exhaustive.

How an $80M dump decoupled a $10B+ ecosystem

In short, think of the UST as a box. Real dollars can go in and out at the same time. Anyone can exchange their UST tokens for real dollars out of the box as long as they have enough funds left. At the same time, Anchor's high yield has led thousands of investors to put their own real dollars in boxes for yield and "safety."

But there is one person (Do Kwon) who amassed billions in UST tokens without investing any real dollars at all.He printed (minted) them out of thin air with his LUNA tokens. This UST can now be used to remove real dollars from boxes, so this essentially controls a money printing machine.

Then TFL and Do Kwon started pumping money out of the ecosystem at top speed. We already discussed Degenbox, through which over $2.7 billion was exchanged. But the aforementioned $1 billion is on top of that! This is even worse because it was removed a few weeks before the UST decoupling.

The most despicable part, though, is that TFL and Do Kwon keep promoting Anchor as a savings product for retail investors. The Terra whitepaper also says that UST will remain price stable and will always be redeemable for $1 worth of LUNA (until they ditch it).

But why do all this?

Since, Do Kwon has the key to the magic box, his goal is simple:Convince people to put as much real money into the box as possible.

He did so by any means necessary, projecting an image of authority, confidence and stability, but he quietly exited stage left.

So, when the UST depeg begins, what happens when retail investors try to exchange their UST tokens back for the real dollars they invested?

That is, the money is gone and the box is empty because someone took the dollars early.

The price of UST then plummeted as people panic-sold to cash in.

Liquidity pools have been drained. Order book depth is also thin. UST is on its knees, hanging by a thin thread - like a zombie, because the real dollars have been withdrawn from the system.

At this point, all it takes is one large UST sell order to bring the whole system down while also being the perfect scapegoat.

LFG tokenized a price peg defense with a small percentage of their profits, but it won't save UST.

The audit revealed that 47,000 Bitcoins were sent to Jump Crypto, but there are no transaction logs/evidence.Jump's connection to the UST decoupling event leaves me with many questions that must be investigated more thoroughly.

We already know that Do Kwon lied to the public about his connection to Basis Cash and cheated on-chain to make the Terra stablecoin appear stronger and more stable.

But what we have uncovered today brings a new dimension to the deceit and fraud he committed.

It's one thing to systematically "dump" UST to retail investors throughout 2021 while simultaneously touting the UST stablecoin narrative. But to do so in late April 22, self-inflict a liquidity crunch on UST, directly cause UST to be decoupled, and then blame others while pretending to apologize is unbelievably mean and pathetic.

Yes, TFL preyed on retail investors. We know this.

However, the behavior of TFL and Do Kwon has also led to a systemic collapse of the entire cryptocurrency industry, and we still feel the pass-through effect every day.

He got knocked out, he filled his company with billions while everyone else suffered.

Do Kwon is still on the run from South Korean authorities, but I firmly believe that, given enough time, an international investigation will help usher in a "closer".

The world needs to send a strong message - fraud on this scale cannot and should not go unpunished!

The same is true for SBF.

The following isproveOn-chain proof of these findings, courtesy of the brilliant @Cycle_22.

As evidenced by these transactions, more than $1 billion was sold by TFL on Curve or sent to Binance.

Oh, so how do we know that TFL dumped all the UST?

They accidentally admitted this in their own audit.

Humans can lie, but blockchains cannot.