:Crypto Mayhem
New Delhi
The global crypto mayhem last week wiped out Bitcoin worth $3.5 billion — created to defend and support the TerraUSD (UST) stablecoin which saw a total crash — and no one has any idea how such a large sum of funds disappeared.
Nearly 80,394 Bitcoin worth $3.5 billion were purchased by the Luna Foundation Guard, the non-profit organisation set up to promote the growth of the Terra ecosystem this year, according to Blockchain analytics firm Elliptic.
CoinDesk reported that while untold billions in value and wealth were lost when those reserves proved inadequate to prevent a depegging last week, what no one knows is what happened to those reserves and where they are now.
Terra Labs CEO Do Kwon tweeted that they were currently working on documenting the use of the LFG BTC reserves during the depegging event.
I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, who have been devastated by UST depegging, Kwon said in a tweet thread.
The UST coin is designed to retain a value of one US dollar at all times but was depegged last week, and fell to just 17 cents. Luna’s value collapsed in one of the most stunning crypto crashes ever recorded. In total, over $15 billion in cryptocurrency value was wiped after the TerraUSD stablecoin collapsed. In the case of Luna Foundation Guard, Elliptic followed the money to major exchanges Gemini and Binance.
