Analyst Suspects Do Kwon of Mirror Protocol Fraud

Terraform Labs (TFL) CEO Do Kwon and venture capitalists manipulated and deceived the management of the DeFi project Mirror Protocolretail investors. An analyst under the pseudonym FatManTerra came to this conclusion.

He identified the Ethereum wallet, throughwhich initiated smart contracts for profitable farming in the Mirror Protocol. The expert linked the address to the Wormhole cross-chain bridge owned by Jump Trading.

At some points, the address held a dominant stake in the Mirror liquidity pool on Ethereum, FatManTerra noted.

“Thus, they received most of the rewards in MIR tokens, which allowed them to have a disproportionate influence on management decisions,” the analyst said.

This wallet and its associated addresses distributed assets to give the illusion of decentralized protocol governance, FatManTerra claims.

One of the addresses sent assets to the dao5 organization, of which Kwon is an official adviser, the expert noted.

All of these addresses clearly had access to significantcapital, says FatManTerra, pointing to multi-million dollar transactions in Mirror synthetics and other assets in the Terra ecosystem. As one example, he cited a transaction for 750 million UST.

After putting the data together, the analyst concluded that«TFL and its associated organizations secretly control most of the powers to manage Mirror without any proper disclosure».

«It also seems that TFL and Jump worked handhand in hand to siphon capital out of the Mirror ecosystem without fair disclosure to retail investors who were being offered the protocol as a fair, decentralized alternative for their stock market savings,” FatManTerra wrote.

According to him, the findings confirmed much of the information provided to him by a previously acting employee of Jump Trading on condition of anonymity.

Recall, the media found out that Kwon was one of the co-founders of the crashed algorithmic stablecoin Basis Cash (BAC).