Terra (LUNA) founder Do Kwon denied Terra’s claims to cash out $2.7 billion from UST. Allegations are that its founder artificially preserved liquidity during the crash. Meanwhile, the $2.7 billion UST was evacuated. However, according to Kwon, these claims are not true.
Was $2.7 billion UST liquidated before the LUNA collapse?
The rumor emerged after a thread of tweets by FatManTerra. The claim involves Kwon artificially maintaining liquidity along with Terra-related phenomena. Kwon allegedly began draining funds while artificially preserving liquidity. But the LUNA founder denies these claims…
Do Kwon, one of Terra’s co-founders, denies claims of cashing out $80 million every month for nearly three years. On June 11, multiple unconfirmed reports surfaced claiming that Kwon participated in draining liquidity from LUNA and UST before the collapse to buy US dollar-pegged stablecoins like Tether (USDT).
Rumors of Kwon cashing in on the LUNA and UST reserves watered after a Twitter thread by FatManTerra shared details about how Kwon allegedly managed to drain funds while artificially preserving liquidity with the Terra phenomena. appeared on his face.
However, the entrepreneur advises the crypto community to avoid fueling the rumor until it’s proven true. advised:
That should be obvious, but the claim that I’ve made $2.7 billion from anything is absolutely false.
Do Kwon says the funds came from the airdrop
Sharing his side of the case, Kwon stated that the rumor that he had cashed out $80 million a month recently contradicted his claims that he held most of the LUNA assets purchased during the airdrop. In addition, Kwon reiterated that his income for the past two years has only been a cash salary from TerraForm Labs (TFL).
LUNA founder: I lost most of what I had
Kwon said that “spreading falsehood” to the community has increased the pain of all LUNA investors, adding:
I didn’t say much because I didn’t want to play the victim role, but I lost most of what I had in the crash. I’ve said this many times, but I really don’t care much about money.
Mr. B, a developer from Anchor Protocol, a Terra-based sub-ecosystem, has something to say. He allegedly warned Kwon of unrealistically high interest rates. Mr B said the platform was designed to offer a 3.6% interest rate just to keep the Terra ecosystem stable, but changed to 20% just before release:
From the beginning I thought (designed) it would crash, but it crashed 100%.
Apparently, Mr. B suggested to Kwon to lower interest rates. However, Do Kwon refused this request.
Do Kwon faces legal issues in South Korea
Court documents reveal that Do Kwon dissolved Terraform Labs Korea days before the LUNA crash. Kwon dissolved Terraform Labs Korea, their South Korean presence, just before its collapse, according to legal documents. They made the decision to dissolve the offices at a shareholder meeting on April 30. However, the timing caused anger within the cryptocurrency community.
Predictably, it continued to resonate with the market this week following Terra’s explosion. As we covered in the news of Kriptokoin.com, the South Korean government is investigating the situation.
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