Terra co-founder Do Kwon denied personal involvement in the collapse of the project

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The CEO of Terraform Labs called claims that $2.7 billion was moved into fiat before the UST stablecoin collapse was “categorically false.”

Do Kwon denies the accusationTwitter user under the nickname FatMan, who on June 11 stated that before the fall in the UST rate, the head of the project withdrew a huge amount of money in cash, which became one of the factors in the collapse of LUNA. FatMan insisted that Do Kwon used a borrowing protocol in the Abracadabra Degenbox ecosystem, allowing users to post collateral to buy UST, invest it in Ancor, and then use UST (aUST) to borrow more UST, invest it again in Anchor, and so on ad infinitum.

“Do Kwon cashed 2.7 billion ($33 x $80 million!) just months before Terra collapsed thanks to Degenbox, the perfect mechanism for withdrawing liquidity from the LUNA & UST into hard money, such as USDT,” said an unknown person under the nickname FatMan.

Less than a few hours later, Do Kwon responded to the accusations:

“It is clear that the allegation that I cashed out $2.7 billion of any assets is categorically false.”  

The Terra co-founder added that “over the past two years, the only thing I have earned is profit from TFL”:

“I used the money as a reserve for the project because I didn’t need the money and didn’t want to cause unnecessary speculation that I had too much money.”

However, Do Kwon's answer did not satisfy the attacker. FatMan continued to insist that the project leader's actions may have been the catalyst for UST's downfall.

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Recently, Seoul police began an investigation into a report of a “suspicious cryptocurrency wallet” that could have been used to steal bitcoins from employees of the Terra insurance fund.