Do Kwon, the CEO and co-founder of the controversial Terra (LUNA) and TerraUSD (UST) ecosystems, denied accusations that the ecosystems had been cashing out $80 million per month for nearly three years.
The story started after @FatManTerra posted a Twitter thread detailing how Kwon and Terra influencers allegedly managed to withdraw funds while artificially preserving liquidity.
On June 11, numerous unsubstantiated claims arose alleging Kwon’s involvement in draining liquidity from LUNA and UST prior to the crash in order to purchase US dollar-pegged stablecoins like Tether (USDT).
After a Twitter thread by @FatManTerra disclosed the alleged details on how Kwon and Terra influencers managed to drain funds while artificially maintaining liquidity, rumors of Kwon paying out LUNA and UST reserves appeared.
The entrepreneur, however, has turned to Twitter to caution the crypto community against spreading the claim until it is proven true:
“This should be obvious, but the claim that I cashed out $2.7B from anything is categorically false.”
In a Twitter thread, Kwon noted that the latest rumor of cashing out $80 million per month contradicts his statements that he still maintains the majority of his LUNA assets obtained during the airdrop. Furthermore, Kwon stated that his primary source of income for the past two years has been a cash salary from TerraForm Labs (TFL), and that he lost most of his assets in the crash.
The collapse of the Terra ecosystem has rocked the crypto market, with the price of LUNA coin, which was once among the top-5 cryptocurrencies by market cap, plummeting to pretty much zero.
The downfall of the multibillion-dollar network has sparked a wave of fear, anxiety, and mistrust throughout the crypto market, attracting the attention and investigation of regulators all over the world. Do Kwon has been summoned to a parliamentary session in South Korea regarding the matter.