Wintermute’s head of research, Igor Igamberdiev, recently suggested that Jane Street Group was involved in UST’s $1 crash (aka depeg), which sparked the company’s swift demise. A few days later, LUNA – UST Ecosystem. For more information, Jane Street is an American trading, investment and liquidity firm best known on Wall Street. Jane Street currently has offices in New York, London, Hong Kong, Singapore and Amsterdam and recruits for over 2,000 positions.
New Information Emerges on Investment Funds, Leading to Decoupling of UST
The head of research at market maker Wintermute focused on “Wallet A” releasing 85 million UST to 4pool — a liquidity pool between USDT on Curve Finance and the other 3 major stablecoins USDT, USDC and DAI — And withdraw a large amount of remaining stablecoins, causing UST to be depeg. Next, wallet B released another 100 million UST, which officially triggered a domino effect and pushed UST into a crisis vortex.
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On May 3, 2022, Clearpool announced that Jane Street had borrowed $25 million in USDC from it @BlockTower Use their licensed loan pool
This news allowed us to identify three addresses of the trading company, only one of which we were most interested inhttps://t.co/mBROglteMD
— Igor Iganberdiyev (@FrankResearcher) February 28, 2023
To reinforce this argument, Igamberdiev cites the announcement of lending protocol Clearpool on May 3, 2022, that Jane Street had borrowed $25 million in USDC from BlockTower. The loan amount was sometimes held in a Coinbase exchange wallet along with $84.5 million in USDC withdrawn by a UST dumper on Curve, which was key to the Wintermute researchers’ conclusion that the Coinbase wallet owner was the main Coinbase wallet. It’s Jane Street. In the two weeks following Terra’s collapse, the address received $15 million and repaid them plus an additional $10 million. In addition, this Coinbase wallet has no other interactions other than the two deposits mentioned above, and most likely belongs to the same institution.
Still, Igamberdiev admits he hasn’t figured out why Jane Street is dumping so much UST. Additionally, the researchers identified Wallet B as Celsius Lending Company. Due to heavy losses at LUNA-UST, Celsius had to block customer withdrawals and declare bankruptcy in July, along with two other names, Three Arrows Capital and lender Voyager.
In conclusion, the possibility of the Jane Street Group’s involvement in the UST depeg crash during the Terra crash is a matter of concern to the crypto community. However, everything still needs to wait for time to confirm.
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mango
according to Kyptos
