Different allegations of corruption by Do Kwon, the founder and CEO of Terraform Labs, have been making the rounds in the media over the past few weeks.
The most recent allegation is about cashing out $80 million on a monthly basis and he has recently come out to refute the claims.
Lots of unconfirmed reports on the 11th of June claimed that Do Kwon participated in siphoning liquidity out of the collapsed Terra (LUNA) and TerraUSD (UST) before the historic crash to purchase US dollar-pegged stablecoin such as Tether (USDT).
The rumors started spreading after a Twitter thread by FatMan, who is known as the whistleblower of the Terra community, shared the alleged details on how Kwon, in conjunction with Terra influencers, managed to drain funds while maintaining the liquidity artificially.
FatMan tweeted, “Some of you thought $80m per month was bad. 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.”
🧵 Some of you thought $80m per month was bad. 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
Do Kwon Shares His Side of the Story
In response to the allegation of cashing out $80 million worth of LUNA and UST every month to accrue $2.7 billion altogether, Do Kwon said in a series of tweets a few hours ago that it’s categorically false.
Do Kwon tweeted, “This should be obvious, but the claim that I cashed out $2.7B from anything is categorically false.”
1/ This should be obvious, but the claim that I cashed out $2.7B from anything is categorically false
— Do Kwon 🌕 (@stablekwon) June 12, 2022
He further pinpointed the allegations and refuted all of them, saying for the last 2 years he has only earned a nominal cash salary from Terraform Labs. He also claimed that he refused to take most of his founder’s tokens because he didn’t need them and wanted to avoid unnecessary attention about having too much.
Do Kwon further noted:
“Two contradictory claims seem to exist where: 1. Do’s wallets are doxxed, and he still owns most of his luna through the airdrop 2. Do dumped all his tokens to make billions. A lane should ideally be picked.
“To reiterate, for the last two years the only thing ive earned is a nominal cash salary from TFL, and deferred taking most of my founder’s tokens because a) didn’t need it and b) didn’t want to cause unnecessary finger pointing of “he has too much.”
“Hope that’s clear – 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.
“Please say things that are proven and true – if you are spreading falsehood that just adds to the pain of everyone who has lost. Thank you.”