Igor Igamberdiev, director of data research at The Block, said on Twitter that Jump Crypto attempted to stabilize UST’s peg to the U.S. dollar a week ago and added more than $682.5 million in liquidity in other U.S. dollar stablecoins to the liquidity pool on Curve and represented by LPs. Coin withdrew nearly 600 million UST in liquidity.
After that, Jump Crypto minted UST as LUNA for arbitrage from around 6:00 on May 10th, Beijing time. On May 12, Jump Crypto completed the transaction on the Terra chain, minting 640 million UST into 221 million LUNA and entrusting it to 5 validators.
Igor Igamberdiev also stated that although Jump Crypto used capital approximately equal to the size of the entire UST pool, it failed to stop it from falling and lost at least hundreds of millions of dollars in this incident.