Jane Street Group’s Potential Involvement in UST Depegging Incident During Terra’s Collapse Raises Eyebrows
Wintermute’s Head of Research, Igor Igamberdiev, recently tweeted about Jane Street Group’s potential involvement in the UST depegging incident that occurred during Terra’s collapse. Igamberdiev revealed that many post-mortems have focused on “Wallet A,” which played a significant role in UST depegging. According to Igamberdiev, there is a good chance that “Wallet A” is related to Jane Street Group.
Many post-mortems after the Terra events have focused on “Wallet A” which played a large role in UST depegging
“Wallet A” swapped 85M UST for USDC and imbalanced the UST/3CRV Curve pool
There is a good chance this wallet is related to @JaneStreetGroup pic.twitter.com/iUGLmFCTaT
— Igor Igamberdiev (@FrankResearcher) February 28, 2023
To support this claim, Igamberdiev cited Clearpool’s announcement on May 3, 2022, that Jane Street borrowed 25 million USDC from BlockTower using their permissioned lending pool. This news allowed Igamberdiev to identify three addresses of the trading firm, one of which is of particular interest. Within two weeks of Terra’s collapse, this address received $15 million and repaid them along with an additional $10 million to the lender without any use.
Additionally, the address invested $150,000 in Tonicdex and borrowed $25 million again, depositing them into a Coinbase wallet that received 84.5 million USDC from the UST depegger after the fateful swap. This Coinbase wallet didn’t have any other interactions except for the two mentioned deposits, making it highly likely to belong to the same entity.
These findings add more weight to rumors about Jane Street Group’s involvement in the theoretical Terra bailout. Celsius also owned “Wallet B,” which dumped an additional 100 million UST in four transactions, further imbalancing the pool. In Celsius’ case, asking for participation made sense, as they were one of the biggest lenders on Anchor. However, it’s unlikely that Celsius “attacked” Terra, which printed money for them.
Igamberdiev notes that since Wallet A had their UST on Anchor for a month, it wouldn’t necessarily mean that Jane Street Group had malicious intent. Nonetheless, he would like to hear from them about “Wallet A.”
In conclusion, the potential involvement of Jane Street Group in the UST depegging incident during Terra’s collapse is a matter of interest to the cryptocurrency community. The details of these findings raise questions about the trading firm’s intentions and highlight the need for further investigation.
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