Do Kwon Denies Siphoning US$2.7 Billion Before LUNA Crash

Do Kwon Denies Siphoning US$2.7 Billion Before LUNA Crash
13 June 2022

Terraform Labs founder Do Kwon is denying allegations that he cashed out US$80 million every month for nearly three years prior to the collapse of Terra.

Rumours that Terraform labs employees told the SEC that US$80 million was cashed out from company funds into dozens of crypto wallets a month prior to the $UST crash have recently surfaced online, after it was reported that the US Securities and Exchange Commission (SEC) had launched an investigation into whether the marketing of the TerraUSD stablecoin violated federal investor protection rules.

According to Twitter account @FatManTerra, Kwon and Terra “influencers” allegedly used DeFi lending platform Abacadabra to artificially maintain UST’s peg while draining funds via a MIM (Magic Internet Money)/UST pool.

Read more: Did Do Kwon’s Arrogance Cause Terra’s Downfall

Do Kwon has refuted the claims, stating that the allegations are “categorically false”. He also explained that his wallets are doxxed, and that he is still holding on to most of his LUNA.

Kwon also claimed that his only income from the past two years has been a “nominal cash salary” from Terraform Labs

“I didn’t say much because I don’t want to seem like playing victim, but I lost most of what I had in the crash too. I’ve said this multiple times but I really don’t care about money much”, Kwon said.

The SEC previously served Kwon papers back in September 2021 at the Messari Mainnet Conference in New York, and has already confirmed its investigation into whether Terraform Labs and Kwon were involved in selling unregistered securities through the Mirror Protocol.

Kwon is also facing legal prosecution in South Korea, where court documents have revealed that Kwon successfully instigated the liquidation of two entities belonging to Terraform Labs just days before the collapse of UST and LUNA.

Blockhead Team
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