Do Kwon dismisses claims of cashing out from Terra’s mishap

Do Kwon
TL;DR Breakdown
  • Do Kwon denies cashing out from LUNA’s crash
  • Twitter users give life to rumors
  • Do Kwon claims he lost funds in the crash

Do Kwon has rubbished rumors that he has been involved in some big cash out in the last few months as Terra’s boss. According to several reports, there have been claims that the Terraform Labs CEO has been taking nothing less than $80 million from the company’s purse in the same time frame. The reports also claim that the funds he was carrying out for the project were one of the reasons for the unfortunate incident.

Twitter user gives life to rumors

Terra suffered a massive mishap months ago after its native token lost as much as 90% of its value. Similarly, its stablecoin, UST, lost its peg, pushing it below the standard $1 price of stablecoins. The rumor was first brought to light by a Twitter user, @FatManTerra, who claimed that Do Kwon and some other project influencers have been draining funds from the project.

The Twitter user also shared details on how these activities were carried out in a thread on the microblogging platform. He mentioned that while they were draining the funds for about three years, they could artificially misrepresent the liquidity volume to maintain its balance. However, there have been calls for people to stop pushing the rumors until they are proven.

Do Kwon also lost funds in the crash

Do Kwon also took to the microblogging platform to share intimate details on the issues while dissuading users from the roaming rumors. In his statement, he mentioned that from the thread, it was obvious that the claims were baseless. In his tweets, Do Kwon says that contrary to what the thread said, most of his funds are still in LUNA. He also mentioned that his physical salary has only come from his company, Terraform Labs. Do Kwon also cautioned the community from spreading news that would fuel the pains of investors that lost most of their savings in the mishap.

He mentioned that most of his holdings were lost in the crash, but he has refused to say it because he wasn’t planning to act as one of the real victims. One of the developers on a sister protocol mentioned that he told Do Kwon about the recent increase in interest in Terra. The developer said that the platform only offered about 3.6% in returns which was moved instantly to around 20%. He mentioned that his thought at the time was that a collapse was imminent, which occurred soon enough.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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