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 practically three years.
Numerous unconfirmed stories 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 reminiscent of 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.
Some of you thought $80m monthly was dangerous. That’s nothing. Here’s how Do Kwon cashed out $2.7 billion (33 x $80m!) over the span of mere months because of Degenbox: the proper mechanism to empty liquidity out of the LUNA & UST system and into arduous cash like USDT. (1/13)
— FatMan (@FatManTerra) June 11, 2022
However, the entrepreneur suggested the crypto neighborhood to steer away from fueling the rumor till it was confirmed true:
“This should be obvious, but the claim that I cashed out $2.7B from anything is categorically false.”
Sharing his facet of the story, Kwon said that the latest rumor of cashing out $80 million monthly contradicts the claims that he nonetheless holds most of his LUNA holdings, procured in the course of the airdrop. Moreover, Kwon additional reiterated that his revenue over the previous two years has solely been a money wage from TerraType 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 too much”
— Do Kwon (@stablekwon) June 12, 2022
Kwon advised the neighborhood that “spreading falsehood” provides to the ache of all LUNA traders, remarking that:
“I didn’t say much because I don’t want to seem like playing victim, but I lost most of what I had in the crash too. I’ve said this multiple times but I really don’t care about money much.”
Related: 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 concerning the unrealistic high-interest charges. Mr. B stated that the platform was designed solely to supply an rate of interest of three.6% for conserving the Terra ecosystem steady, however was modified to twenty% simply earlier than the discharge:
“I thought it was going to collapse from the beginning (I designed it), but it collapsed 100%.”
The developer allegedly instructed 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-May.