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The Spot Light is on Do Kwon After Being Accused of Pulling Out $2.7 Billion for UST Crash

Terra's new token LUNA 2.0 has seen a 54% drop in value over the past two weeks after hitting $11.33 per unit May 30. Fatman,...
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Terra’s new token LUNA 2.0 has seen a 54% drop in value over the past two weeks after hitting $11.33 per unit May 30. Fatman, a whistleblower, has claimed that Terra’s cofounder Do Kwon allegedly cashed out $2.7 billion a few month before the UST depegging incident. Kwon has been monitoring Fatman’s allegations and claims that the allegations are “categorically false”

In terms of market performance, the LUNA 2.0 rebirth token has been very poor over the past two weeks. As Bitcoin.com News reported six day ago, many decentralized finance (defi), protocols have re-joined this ecosystem.

According to stats.defillama.com, Terra’s 2.0 chain holds $1.32 trillion in the Stader Defi Application. Terra Classic still has $10.54 Million total value in defi as of today, with $3.11M held on Terraswap, and Anchor having $2.47M.

The new LUNA lost 54% in the past 14 days, just two weeks after LUNA2.0 reached a peak of $11.33 per coin. It’s still 86% below the record $18.87 per coin at which 2.0 blockchain was launched.

LUNA 2.0 currently has $135 million in global trade volume. This is a far cry from the volume luna classical (LUNC), saw before the fallout. Bitrue and Okx are the top exchanges for LUNA 2.0 in terms of volume trade. Kucoin, Huobi Global and Kucoin are also among them. The top five trading pairs in LUNA 2.0 today are USDT and USD, USDC, EUR and ETH.

Terra Co-Founder Do Kwon is Still Accused Of Shady Acts — Whistleblower Fatman Claims Kwon Cashed Out $2.7 Billion before UST Collapse
LUNA’s market performance is not so great, but there are many crypto assets that have been affected by the bearish market. Do Kwon, however, is still being accused by the Fatman of shady acts.

Bitcoin.com News also reported three days ago on the U.S Securities and Exchange Commission (SEC), which is reportedly investigating the terrausd collapse (UST) and Terraform Labs’ (TFL) activities. Kwon was accused by Fatman of siphoning $2.7B from Terra Project just a few months prior to the UST collapse.

Fatman tweeted: “Some of you thought $80m a month was bad.” “That’s nothing. Here’s how Do Kwon clocked out $2.7 Billion (33 x $80 [million]), in just a few months. Degenbox is the perfect tool to take liquidity out of the LUNA and UST systems and make hard money like USDT.

Fatman claims that the defi borrowing protocol Abracadabra’s Degenbox, tokens such as SPELL or MIIM were used by Kwon to cash out via MIM/UST pool up to $2.719 Billion without having to move the peg.

He said that “UST” is the future. Fatman said that decentralized money was sound money. He said that UST wouldn’t de-peg. He said that centralized stablecoins would rug you eventually. So, why did he convert $2.7b from USDT to and USDC?

Do Kwon refutes the Cash Out accusations, and says he’really doesn’t care about money much’
Do Kwon however, refutes the claims he cash out $2.7B before the UST crashes. Kwon stated that he had claimed $2.7 billion from any source. Kwon has also set his Twitter account to private mode so that only those Kwon tags can reply to tweets.

Kwon stated that “Two contradictory claims appear to exist where: Do’s wallets have been doxxed and he still has most of his luna through airdrop [or] Do dumped his tokens in order to make billions.” “A lane should be chosen.” Terra co-founder also added.

Recall that for the past two years, the only thing I have earned was a nominal cash income from TFL. I deferred taking most tokens of my founder’s tokens, a) because it wasn’t necessary, and b) to avoid unnecessary finger-pointing about ‘he has too many’.

People have been discussing on Twitter how Kwon is now humbler than when he called people “poor” during LUNA’s peak fame. Others were talking about Kwon apparently “bending over” Abracadabra founder Daniele Sesta, and “SPELL bagholders”.

According to the claims, tokens such as SPELL, MIM, and Abracadabra’s Degenbox were used by Kwon to siphon UST into more stablecoin assets. Abracadabra, Sesta and the Wonderland Time debacle have caused some controversy in the past.

Kwon, Terra’s cofounder, stressed via Twitter that nothing about him cashing out is true. “Hope that’s clarified – I didn’t say much because it would make me look like a victim, but I also lost most of my assets in the crash,” Kwon stated Saturday in his denial against claims he had cashed out $2.7B.

“I have said it many times, but I don’t really care about money.” “Please only say facts that can be proven true. It will only add to the suffering of those who have lost,” Kwon said.

Fatman continues to accuse Kwon de dirty tricks. The whistleblower has not stopped critiquing Kwon’s ostensible acts or his current commentary.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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