{"id":239823,"date":"2022-05-27T15:00:01","date_gmt":"2022-05-27T14:00:01","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=239823"},"modified":"2022-05-27T14:47:39","modified_gmt":"2022-05-27T13:47:39","slug":"more-bad-news-for-terra-as-fresh-allegations-emerge-about-mirror-protocol","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/more-bad-news-for-terra-as-fresh-allegations-emerge-about-mirror-protocol\/","title":{"rendered":"More bad news for Terra as fresh allegations emerge about Mirror Protocol"},"content":{"rendered":"

@FatManTerra<\/a> is back with fresh allegations about Terra's synthetic assets protocol Mirror. Specifically, an exploit related to Mirror's lock contract.<\/p>\n

Since the Terra fiasco blew up earlier in May, @FatManTerra has been lifting the lid on the inner workings of the Terra ecosystem. The revelations paint a picture of suspicious goings-on.<\/p>\n

The latest allegations further suggest that Terra users have been on the raw end of the deal for a lot longer than previously assumed.<\/p>\n

Mirror Protocol under the spotlight<\/h2>\n

Details shared via social media on May 26 alleged that Mirror Protocol might not be as decentralized<\/a> as it claims<\/p>\n

@FatManTerra tweeted details of an investigation into Mirror's whale wallets, which he suspects are actively trying to conceal their influence by spreading MIR tokens across burner wallets.<\/p>\n

“I have found evidence that this wallet and related wallets try very hard to make it look like MIR governance is not majority-controlled by a single entity \u2013 they do so by splitting up MIR between several fresh anonymous wallets.”<\/p><\/blockquote>\n

One of these wallets is linked to Terraform Labs CEO Do Kwon via a Decentralized Autonomous Organization (DAO), on which he is an advisor.<\/p>\n

Tying all of this together, @FatManTerra suggests this may point to senior figures within the Terra hierarchy manipulating governance and profiting as a result.<\/p>\n

Fresh allegations<\/h2>\n

@FatManTerra also tweeted details of an exploit on the Mirror Protocol that was plugged roughly 18 days ago, which coincided with the time UST lost its peg.<\/p>\n

\n

\ud83e\uddf5\ud83d\udc47 What if I told you that Mirror Protocol, up until 18 days ago, was susceptible to the one of the most profitable exploits of all time, allowing an attacker to generate $4.3m from $10k in a single transaction? Here's how I discovered this – by pure serendipity. \ud83e\uddf5\ud83d\udc47<\/p>\n

— FatMan (@FatManTerra) May 27, 2022<\/a><\/p><\/blockquote>\n