Do Kwon, the CEO and co-founder of the infamous Terra (LUNA) and TerraUSD (UST) ecosystems, has refuted claims that he had cashed in $80 million every month for nearly three years.
Numerous unconfirmed reports surfaced on June 11, claiming Kwon’s involvement in draining liquidity from LUNA and UST before the drop to buy US dollar stablecoin like Tether (USDT).
Rumors about Kwon pulling out LUNA and UST reserves surfaced after a @FatManTerra Twitter thread shared alleged details about how Kwon, along with Terra influencers, managed to drain the funds while artificially maintaining liquidity.
Some of you thought $80m per month was bad. That’s nothing. Here’s how Do Kwon cashed out $2.7 billion (33 x $80m!) over the span of mere months thanks to Degenbox: the perfect mechanism to drain liquidity out of the LUNA & UST system and into hard money like USDT. (1/13)
— FatMan (@FatManTerra) June 11, 2022
Some of you thought $80 million a month was bad. That’s nothing. Here’s how Do Kwon cashed in $2.7 billion (33 x $80 million!) in the span of a few months thanks to Degenbox: the perfect mechanism to drain liquidity from the LUNA and UST system into hard money like USDT.
However, the entrepreneur advised the cryptocurrency community to stay away from feeding the rumor until it is proven true:
“This should be obvious, but the claim that I cashed in $2.7 billion of anything is categorically false.”
Sharing his side of the story, Kwon stated that the recent rumor that he had been paid $80 million a month contradicts claims that he still retains most of his LUNA stakes, acquired during the airdrop. Furthermore, Kwon reiterated that his income for the past two years has been solely a cash salary from TerraForm Labs (TFL).
3/ To reiterate, for the last two years the only thing ive earned is a nominal cash salary from TFL, and deferred taking most of my founder’s tokens because a) didn’t need it and b) didn’t want to cause unnecessary finger pointing of “he has too much”
— Do Kwon (@stablekwon) June 12, 2022
To reiterate, for the past two years the only thing I’ve earned is a nominal cash salary from TFL, and I deferred taking most of my founder tokens because a) I didn’t need it and b) I didn’t want to cause unnecessary pointing out of ” he has too much.”
Kwon told the community that “spreading the falsehood” adds to the pain of all LUNA investors, noting that:
“I haven’t said much because I don’t want to seem like I’m playing the victim, but I also lost most of what I had in the crash. I’ve said it many times, but I don’t really care much about the money.”
Mr. B, a developer of Anchor Protocol, a sub-ecosystem centered on Terra, reportedly warned Kwon about unrealistically high interest rates. Mr. B said that the platform was designed to only offer a 3.6% interest rate to keep the Terra ecosystem stable, but it was changed to 20% just before launch:
“I thought it was going to collapse from the beginning (I designed it), but it collapsed 100%.”
The developer reportedly suggested Kwon lower interest rates, but the request was rejected. Do Kwon has been summoned to attend a parliamentary hearing on the matter in South Korea in mid-May.
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