Do Kwon, The chief of Terra, has received a lot of media attention recently. South Korean authorities are working to investigate Terra Luna’s downfall, while the leader of Terra, Kwon himself, also faces charges of money laundering and tax evasion.
Fatman has accused Do Kwon of cashing out $2.7 billion a few months before the #UST de-pegging incident. Kwon denies the claims. #LUNA #LUNA2 https://t.co/9qz07DICLJA Lengthy Thread of Accusations— Bitcoin News (@BTCTN) June 13, 2022
On June 11th, self-proclaimed Terra insider named ‘FatManTerra’, accused Do Kwon of cashing out withdrawals of $80 million monthly, 33 times. If the allegations are true, it would sum up to a whopping $2.75 billion; but those who thought Do Kwon would admit any wrongdoing had another thing coming.
Speaking in his own defense, Kwon stated that the accusations are “categorically false” and make little sense. Do Kwon reiterated: “I’ve said this multiple times but I really don’t care about money that much”. However, suspicion is mounting as it was revealed that a LUNA wallet with over 20 million LUNA tokens was used to vote in favor of Do Kwon’s hard fork proposal, which the community had previously shown disdain for, and ‘FatManTerra’ claims to be sure that Do Kwon is the owner of the mysterious wallet.
Caught. The 'mystery' wallet with a 20M LUNA airdrop that was voting on Do's own proposal, delegating to North Star, insider trading ASTRO, etc. - it is officially confirmed that it belongs to Do Kwon himself. (1/3) pic.twitter.com/QqfBnk6Oxe— FatMan (@FatManTerra) June 12, 2022
Known for his pop-star level quarrels on social media, Mr. Kwon insisted that he only took money in the form of cash, which the CEO of Terra Labs is entitled to as a salary from his company: “For the last two years the only thing I’ve earned is a nominal cash salary from TFL.” However, investors doubt Kwon’s claims, resulting in the South Korean authorities’ investigation into the Terra ecosystems crash, at the request of five investors who lost a massive cumulative $1.1 million.
Should we start using the term Kwonzi more often? I propose a definition.Kwonzi: a financial scheme with borrowed elements from and a similar negative-sum nature to a Ponzi but not a Ponzi - cleverly obfuscated by sophisticated manipulation, legitimate technology, and jargon.Terra Luna 2.0 on the Path to Another Fiasco— FatMan (@FatManTerra) June 12, 2022
The swiftly revived Terra blockchain was released back onto the market as LUNA 2.0 just weeks after the scandalous Terra (LUNA) and Terra (UST) incident initially happened. The new Terra (LUNA) token is trading at $2.59 at press time, which is 75.5% less than a fortnight ago, when the hard forked blockchain was restarted.
The old token, now going by Terra Luna Classic (LUNC) is trading at $0.00006137 at the time of writing, a 51.3% deficit for the last two weeks, signaling that the general crypto community seems to have lost trust in Do Kwon’s plans.