As it is known, Terra purchased $3.5 billion worth of BTC in order to maintain the fixed price of the UST token at $1. According to the current situation, this move seems to have not worked, but no one knows where Terra's BTC assets are and what happened to them.
Terra Labs CEO Do Kwon said in a statement on Twitter that a document on the use of reserves during the collapse was on the way. Tom Robinson, founder of blockchain analytics company Elliptic, said that learning where these BTCs are held and how they are used is vital to recoup the losses for investors who suffered from the UST debacle.
It is not known when Terra will publish the document in question. Robinson said in a statement that his companies were tracking this money. According to Robinson, 80,394 BTC worth $3.5 billion was purchased by the Luna Foundation Guard (LFG) between January and May.
When the value of UST started to fall at the beginning of the week, LFG said in its statement that it would sell its BTC reserves and buy UST. On the morning of May 9, LFG announced that it would “lent $750 million worth of BTC to OTC companies to protect the price of UST.
According to the post shared by Elliptic company, at that time 22,189 BTC (current value of $ 750 million) was sent from LFG's BTC address to a new BTC address. In the evening of the same day, another 30,000 BTC (current value of $930 million) was transferred from other LFG addresses to the same new address. According to the Elliptic report, within hours, all of these 52,189 BTC were transferred to the US crypto exchange Gemini.
The image depicting LFG sending its BTC reserves to the Gemini exchange is as follows;
Robinson said that the reason why this large Bitcoin reserve was sent to the crypto exchange may be that the UST was purchased and the price was pulled back to $ 1, but using Blockchain data alone it is not possible to determine whether it was actually spent to support the UST price.
With this transfer, 28,205 BTC remained in Terra's reserves. On May 10, the entire remaining reserve was transferred to an account on the cryptocurrency exchange Binance in a single transaction. Robinson stated that after this transaction, it is not possible to determine whether these assets were sold or transferred to other wallets. Robin Terra continued his statements about the fate of the Bitcoin reserve as follows:
"All we can see is the BTCs being sent to these exchanges. We can't quite see how they are used. They may be sold, they may be held on these exchanges, or they may be withdrawn."