Do Kwon Denies Cashing Out $2.7 Billion Before Terra Crash -Breaking
- Do Kwon denied claims he took out close to $3B in cash before the crash.
- @FatManTerra clapped back at Do Kwon in light of the latter’s recent statement.
- Terraform Labs is under investigation for fraud.
Do Kwon was alleged to have cashed $2.7 billion in cryptocurrency funds before the Terra crash. This has been confirmed by the Crypto Developer.
It should be apparent that the assertion that $2.7B was my cash outflow from any item is false.
The claims that Kwon cashed out $2.7 billion in LUNA and UST reserves became widespread when a Twitter thread by @FatManTerra detailed the purported facts of how Kwon and Terra’s influencers artificially maintained the liquidity while draining money.
Some people thought that $80 million per month was too much. That’s nothing. Here’s how Do Kwon cashed out $2.7 billion (33 x $80m!) over the span of mere months thanks to Degenbox: the perfect mechanism to drain liquidity out of the LUNA & UST system and into hard money like USDT. (1/13)
— FatMan (@FatManTerra) June 11, 2022
Kwon responded by stating that he has the majority of his LUNA assets which he obtained during the airdrop. Kwon also stated that TerraForm Labs is his sole source of income, which he has maintained since 2020.
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.
@FatManTerra was quick to clap back at Kwon, saying: Like last time, Kwon believes that his followers are stupid, thus 0.94 million people will consume this, but 0.06 million won’t.
“[Kwon]@FatManTerra said that you had sold $2.7bn of UST to the MIM pool before Terra 2 was launched. “And now, you airdropped yourself LUNA while lying about it. These are completely unrelated.”
South Korean authorities are currently investigating Terraform Labs (and its employees) for possible Bitcoin fraud. The exchange platform helped officials to secure the money. Police began investigating after receiving tips from employees of the company.