Various allegations of corruption against Do Kwon, the founder and CEO of Terraform Labs, have recently made the rounds in the media.
The most recent allegation is that he withdraws $80 million per month and has recently come out to refute the claims.
On June 11th, numerous unconfirmed reports claimed that Do Kwon participated in siphoning liquidity out of the collapsed Terra (LUNA) and TerraUSD (UST) before the historic crash to purchase US dollar-pegged stablecoins such as Tether (USDT).
The rumors began to circulate after a Twitter thread by FatMan, known as the Terra community’s whistleblower, shared alleged details on how Kwon, in collaboration with Terra influencers, managed to drain funds while artificially maintaining liquidity.
FatMan shared, “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.”
Do Kwon Explains His Point of View
Do Kwon stated in a series of tweets a few hours ago that the allegation of cashing out $80 million in LUNA and UST every month to accumulate $2.7 billion is categorically false.
Do Kwon tweeted, “This should be obvious, but the claim that I cashed out $2.7B from anything is categorically false.”
He refuted all of the allegations, claiming that he has only received a nominal cash salary from Terraform Labs for the last two years. He also claimed that he refused to accept most of his founder’s tokens because he didn’t need them and didn’t want to attract unwanted attention for having too many.
Do Kwon further noted:
“Two contradictory claims seem to exist where: 1. Do’s wallets are doxxed, and he still owns most of his luna through the airdrop 2. Do dumped all his tokens to make billions. A lane should ideally be picked.
“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.”
“Hope that’s clear – 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.
“Please say things that are proven and true – if you are spreading falsehood that just adds to the pain of everyone who has lost. Thank you.”