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Were SBF and FTX Involved In The Collapse Of The Terra Ecosystem? Discover The Truth Here.

Author: Sahana Vibhute

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A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Ever since the Terra ecosystem collapsed, the entire crypto space fell into a bear market, resulting in numerous fallouts and bankruptcies. Initially, it was believed that the selling pressure was orchestrated by a group of traders who had doubts about the stability of algorithmic stablecoin. Su Zhu, the CEO of 3 Arrow Capital, claims Sam Bankman-Fried and FTX conspired in the attack on LUNA and stETH. 

Lookonchain, a popular on-chain analytical platform, has attempted to connect the dots with on-chain evidence, including the de-pegging of stETH in June.

Starting from the beginning, the platform recorded the addresses which withdrew 110,286 stETH from Anchor Protocol. Address ‘0xd5c6a038950b977969e66f4823fd813c67048ba0’ withdrew $216 million worth stETH which crashed the UST & LUNA prices. Interestingly, these tokens were transferred to FTX exchange on June 08, 2022 post to which stETH began to de-peg. However, it cannot be firmly stated that the address belonged to SBF but cannot be ruled out either 

Moving ahead, Celsius Network withdrew 224,949 stETH from Anchor Protocol on May 11, 2022, and transferred 50,000 stETH worth $73.8 million to FTX on June 09, 2022.  Amber Group withdrew 83,380 stETH from Curve and transferred 74,941 stETH worth $110M to FTX on June 10 & 11, 2022. 

During the time of the Terra collapse, FTX’s liquidity was not the highest, but it is still suspicious as to why these addresses transferred stETH to FTX at the same time. With these three addresses, FTX had nearly 235,227 stETH worth more than $347 million at that time.

It is worth noting that these events occurred at identical times, suggesting the involvement of FTX or SBF in the collapse of the Terra ecosystem. While hard evidence is scarce, the possibility remains.

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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