In early May, Terra Luna stablecoin suddenly collapsed 99 percent causing millions of crypto investors to lose their life savings. Before the collapse, Terra was ranked among the top 10 most valuable cryptocurrencies. Now many are worried that the contagion could spread to other stablecoins.
Fast forward a month later, new revelations surfaced about what really went wrong. As we wrote two weeks ago, “before Terra collapsed, 100 billion won ($80 million) of company funds were withdrawn every month,” according to news first reported by South Korean news agency Naver and JTBC. However, Do Kwon has rejected claims of cashing out $2.7 billion before the UST-LUNA collapse as “categorically false.”
In a tweet response to a well-known anonymous Twitter account FatManTerra, Kwon said that “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.”
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
Meanwhile, per other reports, the US Securities and Exchange Commission has reportedly got its hands on the money laundering activities of Do Kwon, the founder of collapsed Terra (LUNA) ecosystem. The SEC has also launched an investigation to enquire about Terra’s sudden fall. But it now appears that SEC is the least of Do Kwon’s worries.
According to a new Twitter video shared on Monday, the infamous hacker group Anonymous is now going after LUNA founder Do Kwon following the collapse of Terra Luna stablecoin. “It is obvious to us that Do Kwon has plenty of secrets and he has been sloppy in his execution,” the unidentified Anonymous speaker said in the video.
