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The creator of the failed Terra blockchain, Do Kwon, is using another project, the Mirror Protocol, for fraudulent purposes. At least, this is what the investigation of FatManTerra users points out. Let’s tell you in detail about the alleged fraudulent scheme.
Twitter User FatManTerra, recently gained fame thanks to analytics Terra, made a new statement. According to him, the protocol Mirror (MIR) is “a farce designed to enrich To Kwon and venture capitalists, by manipulating management and deception in the retail market.”
FatManTerra using a browser service Etherscan identified the wallet in which the smart contracts for the Mirror protocol farms were deployed. The wallet created a smart contract 0xdb27, which, according to FatManTerra, is part of the Terra wormhole infrastructure and is a liquidity pool (LP) for the Mirror protocol. The contract is indeed presented as a liquidity pool of a certain protocol, but currently outside observers cannot confirm or deny the information that it belongs to the Mirror protocol.
Describing the wallet, FatManTerra reports: he was the owner of a larger mass of LP Mirror on Ethereum. Thus, the wallet accounted for most of the reward with MIR tokens, which made it possible to establish control over project management solutions. The problem goes deeper – in fact, we are talking about a network of wallets controlled from a single center. According to the researcher:
I found evidence that this wallet and its associated wallets try very hard to create the impression that the management of MIR is not controlled by one organization – they do this by dividing mir among several new anonymous wallets.
Of course, when combining efforts, the impact of the wallet network becomes even greater.
FatManTerra doesn’t stop and also identifies multiple wallets that interacted, combining tokens across a wormhole, transferring mAssets from Ethereum to Terra, buying $750 million worth of UST tranches, and distributing MIR across multiple wallets similar to the previously described scheme. Someone with more capital and access to LP contracts distributed MIR tokens across multiple wallets to make the protocol look more decentralized.
The actions cast a shadow over the Mirror Protocol, but then the next turn occurs. FatManTerra suggests that one of the wallets it tracks sent tokens to the DAO address, of which Do Kwon is an official consultant. He then describes how mir tokens included in this wallet network were transferred to exchanges. Binance and KuCoin for sale on the open market.
FatManTerra notes: his investigation largely coincided with the data provided to him by anonymous sources in the fund. Jump Capital. Information on the blockchain is available to everyone, and the user invites those interested to double-check it. The question remains the further flow of data from insiders and what will be the reaction of Do Kwon or Jump Capital.
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