Cryptocurrency

How Terra Rebels Scam Allegations Could Force Binance To Stop Supporting LUNC Burn Mission

The Terra Classic community could lose the support of the leading crypto exchange Binance, regarding the LUNC burn campaign. This fresh speculation originates from the recent extortion accusations leveled against the popular independent Terra Classic development group called Terra Rebels by a prominent LUNC validator.

According to LUNCDAO, one of the validators on the Terra Classic network, Terra Rebels used their recent Rebel Station development proposal to swindle $150,000 from the LUNC community pool. Recall that at the passing of the highly controversial proposal 11030, a whopping 937.5 million LUNC was sent to the Terra Rebels group. 

However, the unspecific facts in the proposal like the non-disclosure of how the funds would be expended led to several suspicions and questions from many community members like Strathcole, LUNCDAO, and a competing LUNC development group TerraCVita among others. 

Reacting to these emerging concerns about funds utilization, ClanMudhorn, the TR administrative representative, stated that it’s not the community’s business. “Well, internal distribution is not something we feel concerns community members. Distribution will be given to those that can provide proof of work,” he wrote. This statement and more unusual occurrences like the recent layoff of ten group members raised more suspicions. 

Read Also: Terra Classic V23 Upgrade Completed While LUNC Dev Group Shares Update on Rebel Station

Terra Rebels Accused of Funds Extortion

On Thursday, LUNCDAO published a perceived summary of the alleged Terra Rebels scam action in a tweet. Per the attached screenshot, the LUNC validator recalled that the Rebel Station development proposal specified that the 937.5 million LUNC will only be used to fund “needed infra, Rebel Station, and API work.”

Contrarily, the TR split these funds among their administrators and others who scripted the proposal, as conveyed by LUNCDAO. “Instead, the $150k was immediately sent to discord moderators ($12.5k each) and non-technical people, who wrote the proposal and/or who used their validator power (Vegas) to pay themselves,” the update showed. 

“7 ex-Terra Rebels members kicked by the scam orchestrators and those who left previously have confirmed everything,” the disclosure read, adding that “the proposal misrepresented the real situation and twisted TerraForm Labs’ words (e.g. they will support TS, RS not needed).” 

Binance Could Stop LUNC Burning

As a result of this recent scam allegation thrown at the Terra Rebels group, it is speculated that Binance, the highest contributor to the total LUNC burned, is likely to cease supporting the Terra Classic token burn mission. LUNCDAO said, “Binance likely to stop burning because of the TR scam.” However, this remains just an assumption as there is no statement from the exchange yet. 

Read Also: Popular Terra Classic Validator Burns 100% of His LUNC Rewards: Details

It is worth noting that Binance has destroyed approximately 20,102,986,982 LUNC out of the total burned volume of roughly 36,294,153,165 LUNC. In their last burn event, the exchange took out a whopping 6.3 billion LUNC from circulation forever.


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Ndianabasi Tom

Ndianabasi Tom joined the crypto and blockchain industry in late 2018. He is an all-rounded crypto journalist and content writer. At TimesTabloid, he covers the industry's latest news, developments, and other educational content. He is a graduate of Petroleum Engineering.

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