Investigation claims “Jane Street or Celsius” was behind UST stablecoin downfall

An investigation by some experts in the crypto sector dragged “Jane Street” on the radar of Terra blockchain lovers. On-chain data connections are showing that it was Jane Street or possibly Celsius team behind theUST stablecoin downfall.

UST stablecoin was an algorithmic concept-based stablecoin, which was launched by the Terraform labs. UST stablecoin was integrated with Luna coin, to maintain the value of each UST equal to $1, but both Luna & UST collapsed badly in May 2022. All the past investigations targeted Terraform labs co-founder Do Kwon as the main culprit behind the collapse of the Terra project and also few people believe Kwon created his project to do a very big fraud in the world. 

On 28 Feb 2023, Igor Igamberdiev, a research collaborator at Crypto & Web3 investment company Paradigm, shared his investigation research on Twitter. 

Igor pointed out two crypto companies, which sold a very big amount of UST stablecoin in the initial phase of the UST depeg event.

First company was Crypto trading firm Jane Street. Igor found that a Coinbase wallet received $25 million from Jane Street and also the same wallet received 84.5M USDC from the UST debugger. 

Deep investigations failed to find out other links related to the other possible crypto transactions but showed fingers toward Jane Street, as the wallet didn’t have any other interactions other than the two mentioned deposits.

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Before receiving $25M from Jane Street, this Coinbase wallet received 84.5M USDC from the UST depegger after the fateful swap

This wallet didn't have any other interactions other than the two mentioned deposits

Therefore, they are highly likely to belong to the same entity pic.twitter.com/vOz934hlzm

— Igor Igamberdiev (@FrankResearcher) February 28, 2023

Another crypto company was Celsius, which dumped $100 million worth of UST in four transactions from Wallet B. Investigation noted that Celsius was holding UST on Wallet A & Wallet B, so obviously here we can’t consider Celsius as a culprit behind the UST collapse but there is need for Celsius to respond on the Wallet A activity.

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In the case of Celsius, it's unlikely that they “attacked” Terra, which printed money for them

Given that Wallet A had their UST on Anchor for a month, it wouldn't necessarily mean that Jane St. had malicious intent

However, we’d love to hear about “Wallet A” from them

— Igor Igamberdiev (@FrankResearcher) February 28, 2023

Now here the crypto community is waiting to get a response from Celsius & Jane Street to talk on these matters. A few crypto Twitter users noted that Celsius may not talk on this matter because Celsius already failed to survive in the crypto industry & busy in bankruptcy proceedings. 

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