4 ms·
The most interesting part to me is at the bottom: > What was initially thought to be a market-triggered event turned out to be a clear case of fraud, with form
by eric-hu 4y ago
The most interesting part to me is at the bottom:
> What was initially thought to be a market-triggered event turned out to be a clear case of fraud, with former CEO Kwon at the epicenter. According to on-chain data, In the 3 weeks leading up to the depeg of the TerraUSD (UST) stablecoin, one entity dumped over $450 million of UST on the open market. Four days after the last sale, UST started collapsing. The entity behind the massive dump was none other than Terraform Labs.
- wslh 4y agoIt is great then that in this case blockchain transactions are so transparent: it will take longer to research a fraud if involves standard banks around the world. I assume that if Do Kwon was smarter he would perform transactions more difficult to trace. Not saying that he is not smart but it self-confidence kills many fraudsters.
- 3np 4y agoUsing privacy tools wouldn't necessarily be the smarter move as they could be taken as the smoking gun of someone trying to hide their tracks because they are aware of the problematic aspects.
- wslh 4y agoThere are strategies that Do Kwon could use to cover its tracks, that was the point.
- kataklasm 4y agoAnd parent was saying that if done improperly the usage of such tools might be taken as a linguistic "smoking gun". So rather than risking that Kwon might have preferred doing it overtly, hoping for plausible deniablity in doing so.
- wslh 4y agoStronger that "plausibility deniability" is being no linked to the facts. Do Kwon had virtually unlimited resources for a good plan. My observation from the field (not knowing Kwon but other fraudsters) is that there is an overconfidence based on power. It falls like a house of cards when official prosecutors are involved. It works when everything is handled privately.
- deleted 4y ago[deleted]
- nwah1 4y agoStandard fraud at standard banks is about as easy to trace, or easier, and there is no underlying utility to these crypto scam protocols. So touting the traceability is a red herring.
- anecdotal1 4y agoThe FBI reports about blockchain analysis I've read contradict this statement. Banks are only easier if all entities involved are certain American banks.
- daniel-thompson 4y agoI saw that as well and agree. This might be obvious to someone who's been following this more closely than I have, but why would Terraform Labs trigger their own collapse? Was it just an attempt to exfil the money and run?
- khochesh_kushat 4y agoIsn't that how all rug pulls work? The insiders time getting out, triggering a crash but extracting as much as they can.
- hgsgm 4y agoRight. If there are a billion fauxllers worth half a billion dollars, you want the half a billion dollars attached to your own half a billion fauxllers, and not the other half.