A new development emerges every day regarding the collapse of Terra’s tokens LUNA and UST. As the crypto community and regulators come to grips with the incident, new allegations are coming to the fore. Here are the developments in the last 24 hours that give some more insight into the background of the collapse…
Did the LUNA founder launder money?
JBTC, a media outlet in South Korea, claimed that the SEC suspects Terra chairman Do Kwon of money laundering. According to the agency’s report, the SEC recently met with some of Terra’s top executives. Accordingly, the SEC noticed a detail as a result of the talks that started a few months before the big crash.
SEC The detail revealed that Do Kwon was withdrawing about 80 million won every month. This number, on the SEC side, corresponds to $80 million. All these clues have raised questions about Do Kwon’s money laundering. However, statements that Terra funds were transferred to various crypto wallets were also found in the SEC’s files. An anonymous LUNA developer stated that founder Do Kwon did not take any shares of the altcoin.
Terra team knew the big crash was coming
New evidence discovered by FatMan and shared in a tweet revealed interesting results. Accordingly, Terra founder Do Kwon and his team knew what would happen to Luna and UST before things went bad for the two tokens. Evidence from blockchain addresses reveals that the Terra team abandoned the project before the collapse. What surprised the community was that Kwon and his company knew that Luna and UST were going to explode. It was also that he kept it a secret and did nothing to stop the collapse.
Do Kwon A recent report confirms that TFL employees have briefed the SEC. Accordingly, employees repeatedly warned Do Kwon about the impending collapse. However, Do Kwon continued to withdraw company funds and chose to ignore the issues.
New validator commissioning LUNA victims
Terra community advocate FatMan has launched a validator to assist UST victims. Accordingly, the Terra 2.0 validator will be used to increase community management. Also, this validator will be community funded and fully transparent. According to FatMan, the new plan will ensure the Terra ecosystem is free of corruption. In addition to all this, with the Verifier, 10% of all proceeds will go to the victims of the IHR collapse. Accordingly, the new plan will create a non-profit system.
Terra CEO Do Kwon responded to the allegations
As we reported on Cryptokoin.com, recently, with the Terra incident and TFL’s handling of the incident, Many related reports have been published. LUNA founder Do Kwon took to Twitter yesterday to respond to these numerous allegations. The CEO denied all allegations made in the reports and accused the reports of spreading disinformation. He also accused the “pseudo-developers” who appeared on Twitter of lying.
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