An analyst claimed that the Terraform Labs team deliberately destroyed the UST.
The analyst, using the name Fat Man Terra on Twitter, stated that the Terra team dumped $450 million at UST in April 2022.
Terraform Labs Destroys UST Peg
The analyst said the UST was personally destroyed by the Terra team.
Fat Man Terra claimed that the Terraform Labs team was behind the collapse of Terra USD (UST) and LUNA based on on-chain data.
According to the analyst’s statements, Do Kwon and his team raided the UST uncontrollably, and these assets did not support any real US dollar value.
Therefore, the collapse of the Terra ecosystem was a matter of “time”, not “why”. In mid-April, addresses associated with Terraform Labs’ bots began sending USTs to Curve Finance (CRV) repositories in bulk.
This process caused the collapse of the entire ecosystem.
Fat Man Terra also pointed out that Anchor Protocol users were the most affected project during the collapse.
