Nearly a month has passed since the Terra ecosystem collapsed but new details are still coming into the light about the project. The most recent one being, the CEO of Terraform Labs, Do Kwon cashing out nearly $2.7 billion from the network right before the crash. However, as per the CEO, the claim is “categorically false”.
The allegations were brought into light by an anonymous whistleblower on Twitter, FatMan. The informer accused Kwon of siphoning $2.7 billion from the Terra project a few months before the UST depeg and crash.
Per FatMan, Kwon achieved this thorough Degenbox, a borrowing protocol that enables users to loop stablecoin buys, which gave him the perfect mechanism to drain liquidity out of the LUNA and UST system and into hard money like USDT.
Amid all the claims against Kown, he highlighted “two contradictory claims” in his tweets. Kwon noted,
The co-founder added,
“To reiterate, 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.”
There has been a lot said about the co-founder before and after the crash. The Terra LUNA community has seen a change in his behavior from calling people “poor” during LUNA’s peak, and now trying to win them over. Moreover, he added in his tweets,
“Hope that’s clear – 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.”
But not everyone is ready to bite the bait.
Meanwhile, the newer version of the Luna token has dropped to another all-time low of $21.