Whereabouts of Terra’s Bitcoin Reserve a Mystery After Transfers

Whereabouts of Terra’s Bitcoin Reserve a Mystery After Transfers

According to the blockchain forensic company Elliptic, the $ 3.5 billion bitcoin purchased as a basic reserve, built by the creators of the failed Terra blockchain, became untraceable after being transferred to two cryptocurrency platforms.
What happens to the cryptocurrency that is saved can be an important question as investors try to recover losses by collapsing a blockchain.

Between January and March, the Luna Foundation Guard bought $ 3.5 billion worth of LFG bitcoins, Elliptic said, according to its blockchain tracking tool.

When the price of the Terraform Labs TerraUSD or UST stablecoin began on May 9, the foundation said it would use bitcoins from the UST purchasing reserve to maintain its one-on-one parity in dollars. The next day, according to Elliptic, cryptocurrencies used to maintain low reserves. As much as $ 1.7 billion was sent from LFG’s wallets to the new address through two transactions on May 9 after Terra co-founder Do Kwon said the funds would be used to support the peg. Within hours, the entire amount was transferred to the Gemini cryptocurrency account through several transactions, and since then it has not been possible to trace the assets, Elliptic wrote.

The remaining bitcoin reserves were transferred to the Binance stock exchange account on May 10, Elliptic said. The blockchain analysis company does not know whether the assets were sold or transferred to other wallets at the time.

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