CEO and Co-founder of Terra and TerraUSD Denies Malpractice
Do Kwon, the CEO and co-founder of the notorious Terra (LUNA) and TerraUSD (UST), has refuted the allegations on Twitter that he has been cashing out $80 million every month for nearly three years.
The story started when Twitter user FatMan, who describes himself as FatMan from the Terra Research Forum who provides research, updates, and analysis on the Terra situation as it unfolds, 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. (1/13).
The user goes on to explain how Do Kwon purportedly cashed out even though he’s a “paper billionaire” without breaching the UST’s dollar peg, while also accusing him of churning out lies.
Here's the total amount of MIM Do Kwon was able to cash out through the MIM/UST pool - without even moving the peg! $2,719,132,772.01, to do with what he pleases. No need to dump LUNA or sell UST on exchanges - he drummed up liquidity from all of you. (7/13).Fat Man said.
In response Do Kwon took to his official Twitter handle to describe the allegations as “categorically false”, noting that money is of no great importance to him.
3/ To reiterate, for the last two years the only thing I've 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.he wrote.
Even though Do Kwon’s response to FatMan’s tweet came a day later, it has almost the same amount of likes, suggesting that the community still supports the project.
In May, LUNA and UST made headlines for all the wrong reasons, with the two tokens essentially collapsing. The UST stablecoin was depegged from the U.S. dollar while LUNA lost almost all of its value.
As a result, Do Kwon unveiled the plan to revamp the network, with the community approving of the changes.
