Do Kwon Allegedly Cashed Out $2.7 Billion Months Before Crash -Breaking
- Do Kwon has been the subject of controversy.
- There is a rumor that Kwon cashed out funds regularly since the fall of the LUNC token.
- Analysts feel that there is potential to be bullish for LUNA Classic.
If you haven’t noticed, there are controversies around Do Kwon. He is the founder of both the collapsed Luna Classic token (LUNC), and the new LUNA2.0. There is speculation that Kwon had repeatedly cashed out Terra funds before the collapses of the LUNC token or the UST stabilitycoin.
The de-peg of UST from the dollar and the collapse of the LUNA Classic token wiped out several billions from the token’s market value. Now, the SEC has discovered that Kwon was cashing out approximately $80 million from Terraform Labs every month leading up to the project’s collapse.
Kwon is thought to have pulled $2.7 billion out of Terra Network prior to the crash. This implies that the CEO swindled funds from Terra Network and was well aware that UST could de-peg.
FatManTerra is a whistleblower in Terra who made claims against the CEO. The allegations are currently being investigated by the U.S Securities and Exchange Commission and Seoul Metropolitan Police.
Kwon took $80 million out of Terra 33 times according to the whistleblower. That brings Terra’s total amount withdrawn to $2.7 Billion. FatManTerra said that these amounts were taken out through Degenbox in just a few months leading to the crash and de-peg.
In an attempt to save Terra, LUNA 2.0 launched shortly after the crash. After a short bull rally, the token crashed and burned to the ground.
LUNA establishes potential bottom (Source:CoinMarketCap)
Analysts have now evaluated the price trend for LUNA 2.0 and concluded that it has potential to be bullish after having reached its lowest point recently.
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