The claim came when a Twitter thread by @FatManTerra disclosed the purported facts of how Kwon and Terra’s influencers artificially maintained liquidity while draining cash.
Do Kwon, CEO and co-founder of the notorious Terra (LUNA) and TerraUSD (UST) ecosystems, rejected accusations that $80 million had been cashed out each month for almost three years.
Numerous unsubstantiated claims arose on June 11, alleging Kwon’s involvement in draining liquidity from LUNA and UST before the collapse in order to acquire US dollar-pegged stable coins such as Tether (USDT).
A Twitter thread by @FatManTerra disclosed the purported specifics of how Kwon and Terra’s influencers allegedly drained money while artificially preserving liquidity, sparking rumours that he cashed out LUNA and UST reserves.
Some of you saw $80 million each month as negative. That is trivial. Here is how Do Kwon paid out $2.7 billion (33 x $80 million!) in a matter of months using Degenbox: the right mechanism to drain liquidity from the LUNA & UST system and into real money such as USDT.
However, the entrepreneur asked the cryptocurrency community to refrain from spreading the story until its veracity was established. The allegation that I withdrew $2.7 billion from any source is simply incorrect.
According to Kwon, the latest notion that he is taking out $80 million per month contradicts assertions that he still maintains the majority of his LUNA assets, acquired during the airdrop. Additionally, Kwon reaffirmed that his sole source of income for the previous two years has been a cash payment from TerraForm Labs (TFL).
Kwon remarked to the community that “promoting untruth” exacerbates the suffering of all LUNA investors, stating:
“I didn’t say much since I didn’t want to seem to be a victim, but I also lost most of my possessions in the collision. I’ve said several times that I don’t care much about money.
Mr B, a developer from the Terra-centric sub-ecosystem Anchor Protocol, reportedly informed Kwon about the excessively high-interest rates. Mr B said that the platform was originally intended to give a 3.6% interest rate for the stability of the Terra environment, but this was adjusted to 20% shortly before its debut.
“I expected it to fall apart from the beginning (I planned it), and it did so completely.” The developer reportedly proposed to Kwon that the interest rates be lowered, but the proposal was denied. Do Kwon has been called to a mid-May South Korean parliamentary hearing on the topic.