Do Kwon denies paying $2.7 billion to Terra (LUNA) and UST
The accusation arose when a Twitter thread by @FatManTerra disclosed supposed information on how Kwon and Terra influencers were able to withdraw funds while artificially preserving liquidity.
Do Kwon, the CEO and co-founder of the infamous Terra (LUNA) and TerraUSD (UST) ecosystems, denied cashing out $80 million per month for almost three years.
On June 11, several unproven claims emerged citing Kwon’s involvement in draining liquidity from LUNA and UST before the collapse in order to acquire US dollar-pegged stablecoins such as Tether (USDT).
Reports about Kwon cashing out LUNA and UST reserves came after @FatManTerra disclosed alleged information on how Kwon and Terra influencers tended to drain funds while artificially preserving liquidity.
The entrepreneur, however, informed the crypto community to avoid spreading the rumor until it was proven true:
“This should be obvious, but the claim that I cashed out $2.7B from anything is categorically false.”
Kwon added that the latest rumor of cashing out $80 million every month counters claims that he still retains the majority of his LUNA holdings acquired after the airdrop. Furthermore, Kwon stated that his income for the previous two years has exclusively been a cash salary from TerraForm Labs (TFL).
Kwon informed the community that “spreading falsehood” increases the anguish of all LUNA investors, noting 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.”
Kwon allegedly informed Mr. B, a developer from the Terra-centric sub-ecosystem Anchor Protocol, about the unrealistically high interest rates. Mr. B stated that the platform was initially intended to offer a 3.6% interest rate in order to maintain the stability of the Terra ecosystem, but this was adjusted to 20% right before the release:
“I thought it was going to collapse from the beginning (I designed it), but it collapsed 100%.”
The developer is said to have asked Kwon that the interest rates must be lowered, but the proposal was turned down. Do Kwon has been called to a parliamentary hearing in South Korea in mid-May on the matter.
