Investigators are still scratching their heads over the cause of the TerraUSD crash.

Cryptocurrency investigators are still scratching their heads, trying to figure out what caused UST and LUNA to fail last May.

Nansen analytics recently suggested that lending platform Celsius was one of the factors that contributed to TerraUSD's demise. Celsius, on the other hand, is not convinced by these theories.

This raises the question of transparency in the DeFi industry. It can be difficult to understand where money is going or how easy it is to cause a currency meltdown in this industry. This is why regulators are concerned about DeFi's impact on investors and the financial system as a whole.

The Anchor Protocol was a popular service for TerraUSD holders, but in May, a large number of investors withdrew their funds from Anchor. It is still unknown why this occurred, but some theories have emerged.

According to one of these theories, Celsius was among the first to withdraw its funds from Anchor, resulting in a broader selloff on the platform.

Celsius stated that the only reason it removed its funds from the platform was due to "changes in the stability." The company also made it clear that it benefited in no way from the resulting insecurity.

Companies such as Celsius accept deposits from customers and then lend that money to other users for a fee. Celsius provides users with returns of around 14%. As a result, Avalanche's 19.5 percent yields were very appealing.