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Luna Team Exposed: Why Smallholder Refund May Not Happen

Since the devastating collapse of the Terra ecosystem, which resulted in the major price loss of LUNA and UST de-pegging, lots of controversies around the incident has continued to unfold.

A whistleblower, identified on Twitter as FatMan, who provides key updates on the Terra situation as it unfolds, has claimed that he was able to know some deeply troubling things about the attack on the ecosystem from several whistleblowers that want to remain anonymous. He also shared the reason why smallholder refunds may not happen.

Read Also: CZ Explains Why Binance Resumes Terra (LUNA) Trading Despite Collapse

In a series of tweets on 23rd May, FatMan claimed that he has lots of genuine information about the involvement of some individuals and firms, including the Terraform founder Do Kwon, in the collapse of the blockchain.

FatMan tweeted, “In the past 48 hours I have been contacted by several whistleblowers. These people would like to and will stay anonymous. I have learned some deeply troubling things and there is a lot more to come – this is just the very beginning. Here is some of what I can tell you.”

Summarizing what he knows, FatMan wrote further:

“@stablekwon I know about the bailout from Jump in May 2021 and I know exactly how much you owe them every month in LUNA (hint: how many zeroes in a million?).

“@jump_ I know exactly what you did to manipulate retail into losing billions on UST but especially LUNA.

“@KanavKariya I know who controls you behind the scenes (B); I know about your Slack group having a 14 day retention window.

“@SBF_FTX I know about the 30% Serum handshake deal with Jump and what you did to retail investors after.

“There is far more that I cannot say, but know that I know, and know that justice is coming, because this time I think you went too far – this time you killed people – someone has to fight for them. If I go, someone will take my place. This is nothing – just the start. Go time.”

Read Also: Do Kwon Amends Terra 2.0 Proposal When Voting Still in Progress. Aggrieved Members Right All Along?

Do Kwon Doesn’t Want To Relinquish Power

In a separate thread, FatMan said information received from a verified insider says that Do Kwon knows the importance of the builders, but remains adamant because he does not want to relinquish power.

Quoting the whistleblower, he wrote, “Do Kwon knows the builders are important, but it looks like he doesn’t want to relinquish control. Three major protocols were strong-armed into supporting the new fork and many of us don’t like it.

“Build teams negotiated a 25% stake in Terra 2 but were forced to accept a 10% compromise and were cut out if they didn’t support it publicly.”

According to FatMan, the Terra community builders are an amazing and talented set of people that don’t deserve any of what happened.

Read Also: Mike Novogratz Breaks Silence on Terra Collapse, Speaks on Galaxy Digital’s Investment in LUNA

Why Smallholder Refunds May Not Take Place

There’s a report that says the Korean police have found indications that funds were internally embezzled, which brought about an attempt to freeze Luna Foundation Guard (LFG) assets.


According to FatMan, who claimed that this Korean police’s move could be the official confirmation of what his group of whistleblowers has suspected, all LFG funds were entirely controlled by Terraform Labs.

FatMan says further, “If LFG assets are frozen by the police too soon, the small holder refund that they guaranteed may not take place. Let’s hope bureaucracy drags its feet on this one, at least for the time being. I have been contemplating several matters (albeit sleep-deprived) – more to come soon.”

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Solomon Odunayo
Solomon Odunayo
Solomon Odunayo is a cryptocurrency journalist with over 3 years of experience in the crypto industry. He's sternly interested in covering developments of emerging and established blockchain projects.

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