The Terra Luna Classic (LUNC) community is in the middle of a controversy surrounding the alleged disappearance of 200 million USTC (TerraClassicUSD). The missing funds are linked to the now-rebranded Risk Harbor team, currently known as Andalusia Labs, and a project called Karak Network.
Community Claims Misappropriation by Karak Network
Terra Luna Classic developer RedlineDrifter ignited discussions within the community by questioning Karak Network, a project backed by cryptocurrency giants Coinbase and Pantera Capital. The accusation centers on 200 million USTC valued at roughly $8 million, allegedly belonging to the Terra Classic community.
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RedlineDrifter pointed the finger at Karak Network co-founder Raouf Ben-Har, suggesting the missing funds originated from the time Ben-Har operated under Risk Harbor. According to the report, the Risk Harbor team, now Andalusia Labs, used administrative privileges to withdraw the 200 million UST (now USTC).
Seeking answers and transparency, a member of the Terra Classic community participated in a BNB Chain X space featuring representatives from Karak Network, Lista DAO, and Listapie. The discussion specifically focused on the whereabouts of the missing 200 million USTC.
Karak Network Denies Misconduct
Karak Network has responded to the accusations, with Chief Security Officer Victor Cheng denying any claims of stolen funds. Cheng stated that the foundation sold USTC, originally provided by Terra (now dissolved), at a significant loss after its value plummeted. He asserts that this financial decision is the sole reason behind the missing funds and that no user assets were ever compromised.
Community Efforts and Price Performance
The Terra Luna Classic community has burned around 800 million USTC, reducing the circulating supply. Despite the ongoing controversy, LUNC and USTC prices remain stable.
With minor changes in the last 24 hours, they are trading at $0.00008063 and $0.01745 respectively. Trading volume has decreased, but the community expects a price recovery in July with the Binance LUNC burn program and Tax2Gas mechanism.
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Read Also: Why Terra Classic (LUNC) and USTC Prices Soared
The situation highlights the importance of transparency and clear communication within the crypto space. While the accusations against Karak Network remain unproven, fostering open dialogue between project teams and their communities is crucial for maintaining trust and stability.
The coming weeks will likely reveal more details regarding the fate of the missing USTC. In the meantime, the Terra Luna Classic community’s efforts to reduce circulating supply and the upcoming implementation of burn mechanisms could potentially influence the future price movement of LUNC.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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