According to the allegations, Do Kwon, together with influential people from Earth, managed to drain funds while artificially maintaining liquidity.
- The user of Twitter FatMan uncovered crucial information about Terra.
- He says Do Kwon would have withdrawn $2.7 billion to his portfolio.
- Do Kwon denies the accusation
The collapse of Earth and your stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. UST has uncovered what could be an alleged embezzlement of funds by its creator, Do Kwon, according to reports from several media and influencers who have uncovered the scandal. On Friday, we reported that the South Korean newspaper JTBC reported that the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission, SEC, has reportedly discovered that Do Kwon had been channeling nearly $80 million of Terraform funds into their own pockets. monthly before the collapse of UST y LUNA.
Like this one, several unconfirmed a state in which a transaction has not been appended to the blockchain. reports surfaced yesterday claiming that Do Kwon’s participation in the liquidity drain on LUNA y UST before the collapse to buy US dollar-linked stablecoins such as Tether (USDT).
The buzz became even bigger after the thread on Twitter where the user @FatManTerra to share the allegedly precise details about how Do Kwon, along with influential people from Earth They were able to drain these funds. This user has dedicated himself to uncovering scandals related to the collapse of Earth.
Some of you thought $80 million a month was bad. That’s nothing. That’s how Do Kwon cashed out $2.7 billion ($33 x $80 million!) in just a few months thanks to Degenbox: the perfect mechanism to drain liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. from the LUNA and UST system and convert it into hard currency currency is a medium of exchange that defines value. like USDT. (1/13)
???? 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
How did it go?
The 13-part thread also explains, among other things:
“When you’re a paper billionaire, it’s hard to cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. out. Throwing $2b of LUNA for USD into the market an area or arena, online or offline, in which commercial dealings are conducted. will cause a huge drop. Sure, Do Kwon can always use his ‘burn/lie’ printer to convert it all to UST, but how do you convert $2b of UST into real money without breaking in the world of cryptocurrencies, breaking the forward compatibility of cryptoassets is seen in hard forks of a cryptocurrency. the peg?”
Steps to follow
– Clarify the purpose of these great exchanges.
– Publish a PDF breaking down the sources of LFG funds, as they were intended for UST holders.
– Publish business records and counterparties to the ‘parity defense’ (you still haven’t provided any evidence of any of that! ).”
Do Kwon’s denial
Last night, Do Kwon wrote a Twitter thread to deny the accusation. It begins like this:
1/ This should be obvious, but the claim that I cashed out $2.7B from anything is categorically false
– Do Kwon ???? (@stablekwon) June 12, 2022
“This should be obvious, but the claim that I charged $2.7 billion of anything is categorically false.”
Continuing in the thread, Kwon stated that the recent rumor of charging USD $80 million per month contradicts claims that he still owns most of his stakes in LUNA, acquired during the airdrop. In addition, Kwon further reiterated that his income in the past two years has only been a cash salary of TerraForm Labs (TFL).
“To reiterate, for the past two years all 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 them and b) I didn’t want to cause unnecessary “he has too much” finger-pointing.
Kwon told the community that“difundir falsedades” joins in the grief of all LUNA investors.
“Please say things that are tried and true, if you are spreading falsehoods, it only adds to the pain of all those who have lost. Thank you.”
He also noted that:
“I didn’t say much because I don’t want to sound like a victim, but I also lost most of what I had in the accident. I’ve said this several times, but I really don’t care much about the money.”
As shared by Cointelegraph, Mr. B, a developer of Anchor Protocol, a Terra-centric sub-ecosystem, reportedly warned Kwon about unrealistically high interest rates. Mr. B said the platform a place to buy, sell and store cryptocurrency was designed only to offer a 3.6% interest rate for keeping the Terra ecosystem stable. Earth, but it was changed to 20% just before the launch:
“I thought it was going to collapse from the beginning (I designed it), but it collapsed 100%.”
The developer allegedly suggested to Kwon to lower the interest rates, but the request was rejected.
Sources: Twitter, Cointelegraph , archivo
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