Do Kwon,
the ceo and co-founder of the notorious Terra (LUNA) and TerraUSD (UST) ecosystem, has denied allegations of making $80 million in cash a month for nearly three years.
Numerous unconfirmed reports emerged on Saturday, confirming Kwon's involvement in withdrawing liquidity from Luna Classic (LUNC) and TerraUSD Classic (USTC). In the content of the allegations, the liquidity withdrawal is known to have occurred before the incident of buying stablecoins pegged in US dollars such as Tether (USDT).
The impact since Kwon's rumors of allegations spread
Rumors of Kwon withdrawing LUNA and UST reserves came after a FatManTerra Twitter thread shared details of allegations about how Kwon and other influential Terra secretly withdrew money while maintaining ghost payment transactions.
🧵 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)
— FatMan (@FatManTerra) June 11, 2022
However, the entrepreneur has advised the cryptocurrency community to avoid exaggerating rumors until the allegations are verified.
"This is true, but spreading rumors that I've made $2.7 billion from anywhere is completely unfounded."
Sharing more from a personal point of view, Kwon suggested that recent rumors of earning $80 million per month contradicted claims that the majority of LUNA shares traded during the broadcast were still owned by him. Furthermore, Kwon also reiterated that all the money he received in the past two years was cash salaries from TerraForm Labs (TFL).
3/ To reiterate, for the last two years the only thing ive 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”
— Do Kwon 🌕 (@stablekwon) June 12, 2022
Kwon remained silent in the face of the wave of public opinion.
Kwon expressed his own view to the community that "spreading falsehoods" added to the pain of all LUNA investors, he emphasized:
"I don't speak up much because it may lead some people to gloat that I'm on the weak side, even though this clash takes away most of what I have. You may have heard this many times, but I still want to reiterate that money doesn't really matter to me."
Mr. B, a developer from Anchor Protocol , a Terra-centric sub-ecosystem, reportedly reminded Kwon of unrealistically high interest rates .
Mr. B said that the platform was designed to offer a 3.6% interest rate to keep the Terra ecosystem stable but was changed to 20% just before its release:
"From the beginning I had absolutely no faith in its stability even though I was its creator, but in the end it collapsed 100%."
The developer is believed to have warned Kwon in advance about the deterioration of interest rates but this information has been dismissed. Do Kwon has now been summoned to attend a parliamentary hearing on the issue in South Korea.
