Do Kwon, the CEO and co-founder of the notorious Terra (LUNA) and TerraUSD (UST) ecosystems, refuted the claims of cashing out $80 million each month for almost three years.
Quite a few unconfirmed experiences surfaced on June 11, claiming Kwon’s participation in draining liquidity out of LUNA and UST earlier than the crash to buy US dollar-pegged stablecoin equivalent to Tether (USDT).
Rumors about Kwon cashing out LUNA and UST reserves surfaced after a Twitter thread by @FatManTerra shared the alleged particulars on how Kwon, together with Terra influencers, managed to empty funds whereas artificially sustaining the liquidity.
A few of you thought $80m monthly was unhealthy. That is nothing. This is how Do Kwon cashed out $2.7 billion (33 x $80m!) over the span of mere months due to Degenbox: the proper mechanism to empty liquidity out of the LUNA & UST system and into laborious cash like USDT. (1/13)
— FatMan (@FatManTerra) June 11, 2022
Nonetheless, the entrepreneur suggested the crypto neighborhood to steer away from fueling the rumor till it was confirmed true:
“This must be apparent, however the declare that I cashed out $2.7B from something is categorically false.”
Sharing his aspect of the story, Kwon said that the current rumor of cashing out $80 million monthly contradicts the claims that he nonetheless holds most of his LUNA holdings, procured through the airdrop. Furthermore, Kwon additional reiterated that his earnings over the previous two years has solely been a money wage from TerraForm Labs (TFL).
3/ To reiterate, for the final two years the one factor ive earned is a nominal money wage from TFL, and deferred taking most of my founder’s tokens as a result of a) didn’t want it and b) didn’t need to trigger pointless finger pointing of “he has an excessive amount of”
— Do Kwon (@stablekwon) June 12, 2022
Kwon instructed the neighborhood that “spreading falsehood” provides to the ache of all LUNA buyers, remarking that:
“I didn’t say a lot as a result of I don’t need to appear to be enjoying sufferer, however I misplaced most of what I had within the crash too. I’ve mentioned this a number of occasions however I actually don’t care about cash a lot.”
Associated: Anchor dev claims he warned Do Kwon over unsustainable 20% rate of interest
Mr. B, a developer from Anchor Protocol, a Terra-centric sub-ecosystem, allegedly warned Kwon in regards to the unrealistic high-interest charges. Mr. B mentioned that the platform was designed solely to supply an rate of interest of three.6% for retaining the Terra ecosystem steady, however was modified to twenty% simply earlier than the discharge:
“I assumed it was going to break down from the start (I designed it), but it surely collapsed 100%.”
The developer allegedly recommended to Kwon about reducing the rates of interest however the request was refused. Do Kwon has been summoned to attend a parliamentary listening to on the matter in South Korea in mid-Might.
