Categories: Payment system news

Do Kwon Refutes Claims of Cashing Out $2.7 Billion Before the LUNA-UST Fiasco

The founder and CEO of Terra, Do Kwon, has refuted recent claims that he has cashed out a whopping $2.7 billion before the fiasco that led to UST losing peg and LUNA crashing to $0.

  • Well-known anonymous Twitter account FatManTerra made another massive allegation yesterday, arguing that Do Kwon, the founder, and CEO of Terra, cashed out a whopping $2.7 billion over the span of months prior to UST’s depeg in May.
  • FatMan alleges that Do Kwon had used Degenbox – a borrowing protocol in the Abracadabra ecosystem, allowing users to stake collateral to buy UST, put it into Ancor, then used the staked UST (aUST) to borrow more UST, put it into Anchor once again, and so forth – a loop.
  • Hours later, Do Kwon took it to Twitter to completely refute the claims, slamming them as “categorically false.”

This should be obvious, but the claim that I cashed out $2.7B from anything is categorically false. – He said.

  • He also said that “for the last two years, the only thing I’ve 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.”
  • FatMan didn’t stop there, though. Following Kwon’s response, the account continued insisting on the founder’s wrongdoings, asking further questions that are yet to be answered.

Caught. The ‘mystery’ wallet with a 20M LUNA airdrop that was voting on Do’s own proposal, delegating to North Star, insider trading ASTRO, etc. – it is officially confirmed that it belongs to Do Kwon himself. (1/3) pic.twitter.com/QqfBnk6Oxe

— FatMan (@FatManTerra) June 12, 2022

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