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Michael Patrin, co-founder of the bankrupt Canadian exchange QuadrigaCX, took advantage of the crash of the algorithmic stablecoin TerraUSD (UST) and earned ~$760,000. This was found by PeckShield
Michael Patrin, co-founder of the bankrupt Canadian exchange QuadrigaCX, took advantage of the crash of the algorithmic stablecoin TerraUSD (UST) and earned ~$760,000. This was found by PeckShield experts.
On May 10, against the backdrop of a correction in the cryptocurrency market, the UST lost its pegged value against the dollar. The stablecoin rate dropped below $0.62.
According to the transaction analysis, Patrin, known as 0xsifu in the Twitter community, traded ~2.8 million USDT for ~3.88 million UST, with the price of the latter close to the low of $0.72.
#PeckShieldWarning @0xSifu changed ~2.8m $USDT up to ~3.88 m $UST when? $UST It fell to $0.72. Right now, $UST Raised to $0.91 in 4 hours, total trade value ~$3.5 million pic.twitter.com/yaLntFHjWP
— PeckShieldAlert (@PeckShieldAlert) May 10, 2022
A few hours later, the UST rebounded to levels close to $1. The trader sold 3.88 million UST for 3.56 million USDT. The profit from the transactions amounted to ~$760,000 and sent some of the funds to the Avalanche network.
#PeckShieldWarning @0xSifu swap 3.88m $UST up to 3.56m $USDT (~750 thousand dollars profit) and 100 thousand bridges $USDT avalanche pic.twitter.com/Y7XXHohZGa
— PeckShieldAlert (@PeckShieldAlert) May 10, 2022
In January, the Wonderland community discovered that Patrin was the co-founder of the 0xsifu project. He is thought to be involved in the collapse of QuadrigaCX in 2019. As a result of the event, users lost approximately $137 million.
Daniele Sestagalli, another co-founder of the DeFi project, confirmed the identity of 0xsifu. Patrin was the Treasurer of Wonderland. More than 87 percent voted to resign a person previously convicted of financial crimes.
However, the story caused a great divide in society. The Wonderland (TIME) token dropped to levels close to $400, with a maximum of $10,063 in October 2021. At the time of writing, the coin is trading around $75 (CoinGecko).
Earlier, Patrin said in the past two years earned more than $80 million from trade and investments.
“I didn’t rob anyone. But who needs the facts?” he added.
Transparent profit of over $80M from trades and investments in my Doxxed wallet. Nobody robbed. But hey, who needs facts?
— 0xsifu (@0xSifu) April 16, 2022
Amid the ongoing problems in the Terra ecosystem, one user wrote that if Terraform Labs CEO Do Kwon appoints 0xsifu as treasury manager, “the reserves in BTC through trade would be five times that, and the UST would be oversecured.”
Had Do Kwon installed Sifu as treasury manager, he would have increased BTC 5x in his daily trading and UST would have been over-collateralized by now.
– fbifemboy (@0xfbifemboy) May 10, 2022
Recall that in May the Luna Foundation Guard increased the volume of the reserve fund to 80,394 BTC (~$2.43 billion at the current exchange rate) to ensure the stability of the UST.
According to Kwon, the required amount in bitcoins should be $10 billion.
Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
