It’s good to see Do Kwon, the CEO of Terraform Labs, back in the limelight after the collapse of TerraUSD (UST) as well as Terra (LUNA), Terra’s native token.
In a series of tweets released on May 25, a person known only as FatManTerra and labelled “FatMan from Terra Research Forum,” a well-known source of leaks in the crypto business, made claims of fraud.
According to the tweets, the system’s MIR tokens were dispersed over a large number of wallets by someone with access to a significant amount of money and liquidity provider (LP) contracts in order to give the impression that the network was more decentralised.
FatManTerra claims that the Terraform Labs (TFL)-created Mirror Protocol is nothing more than a fake protocol designed to enrich Do Kwon and VCs “while influencing government and screwing out retail.”
Etherscan helped FatManTerra find a wallet that was running the Mirror Protocol’s smart contracts, which were then tracked back to this wallet, which is also one of the most popular MIR wallets, according to CoinMarketCap statistics.
Additional data were listed, including the fact that this wallet issued a smart contract for which FatManTerra asserted is part of the Terra wormhole infrastructure and a Mirror Protocol Lp.
How far the alleged scam goes
Many wallets have been found to have participated in the above-mentioned “wormhole,” which included transferring tokens from Ethereum (ETH) to Terra (TerraUSD), acquiring $750 million tranches of UST, and then disseminating them among various wallets in the same way as before.
This whistleblower claims Do Kwon is an official adviser to a decentralised autonomous organisation (DAO) that FatManTerra was keeping an eye on.
FatManTerra claims that the MIR assets were finally sold on KuCoin and Binance after being routed via the labyrinth of wallets. Every individual should perform their own study and come to his or her own conclusions, as FatManTerra advised.