TechFlow news, January 9 — According to Bitcoin.com, Jacob Gadikian, CEO of blockchain services firm Notional Labs, recently revealed that the collapse of the Terra ecosystem was not solely caused by Do Kwon, but rather the result of a carefully orchestrated attack by unknown actors. Data from Flipside shows that during UST's de-pegging event, on-chain transaction volume surged sixfold, with a flood of bot transactions preventing Terra from restoring UST's dollar peg through its economic model.
Detailed analysis indicates that attackers flooded the network with over 70,000 failed transactions from a small number of addresses, clogging validator mempools—which can only hold up to 5,000 transactions. Gadikian presented a video of an attack on the Cosmos Hub security testnet, demonstrating behavior highly consistent with what occurred during UST's de-pegging.
Do Kwon has since been extradited to the United States to face charges of cryptocurrency fraud. U.S. prosecutors estimate the Terra collapse resulted in nearly $50 billion in losses, affecting more than one million people, making it one of the most catastrophic events in cryptocurrency history. However, according to Gadikian's assessment, the true masterminds behind the incident remain at large.
