The outspoken founder of Dogecoin has expressed his feelings about the allegations facing Do Kwon and Terraform Labs. The Terra boss has been in the news for the wrong reasons and the criticism from other industry developers seems fair because his alleged actions could put the rest of the industry under more scrutiny.
A case in point is the latest allegations against him and linking him to a Terraform Labs money laundering scheme.
According to previous reports, the Terra team was interrogated by the US SEC. As a result, they confirmed Do Kwon’s embezzlement of Terra’s funds, as the founder transferred funds to the tune of $80 million a month from company funds to secret crypto wallets and foreign bank accounts.
This news did not surprise people like Dogecoin creator Billy Markus as he tweeted a sarcastic GIF pretending to be shocked by the allegations.
It is easy to understand the feelings of Billy Markus because he believes that these days “Every crypto Project is Made to Enrich Creators At Expense of Community”.
Recently the memecoin founder criticised Luna 2.0, saying: “luna 2.0 will show the world just how truly dumb crypto gamblers really are.”
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Do Kwon Masterminded a Ponzi Scheme
The Terra boss’ actions caused other users to compare him with famous ponzi schemer, Bernie Madoff who was responsible for $60 billion loss of investors’ money in 2009. Hence, in 2022, Do Kwon lost the same amount of investors’ funds when LUNA and UST crashed in May.
The Terra team collaborated on the money laundering allegations and said that Do Kwon constantly transferred $80 million of Terra funds every month before LUNA collapsed. According to Blockstream’s Adam Back, these actions contributed significantly to the collapse of the Terra ecosystem.
He said,
“Just to say 12 x $80m = $1bil. That level of selling and the leverage increase resulting may have materially contributed to the collapse depending on the market cap over time.”
Read more👉Terra’s CEO Being Investigated Over Alleged Price Manipulation of LUNA and UST
