Do Kwon disputes new charges that he used Degenbox to withdraw $2.7 billion from the Terra environment.
Do Kwon was reportedly accused of taking $80 million a month out of the Terra ecosystem prior to the crash; new allegations claim this occurred more than 33 times and that Abracadabra Money took an incredible $2.7 billion out of the system using Degenbox. After re-opening his Twitter account, Do Kwon has vehemently disputed the accusations, calling them “fake.” The accusations state that Do Kwon withdrew the money as indicated by FatManTerra using Abracadabra.money and a staking loop that permits extremely high levels of leverage. Other derivative tokens, such stETH, also use the staking loop. Although the benefits from these advanced yield tactics are absurdly large, they produce assets that are incredibly volatile and have a significant danger of being liquidated. FatManTerra claims that Do Kwon used this tactic and bet on Terra’s future in order to further his own interests.
Since there isn’t enough liquidity to absorb the selling pressure, FatManTerra questioned how Do Kown was able to sell the $80 million tranches of tokens he bought without crashing the price of either $LUNA or $UST. The $MIM tokens were then purportedly sold by Do Kwon for $USDC and $USDT. Do Kwon’s purchase of either $USDC or $USDT is quite rare given his public declaration that investors should only put their faith in decentralised stablecoins like $UST. The value of the $MIM tokens that were turned into centralised stablecoins is depicted in the figure below. Then, in order to pay out, these tokens were sent to exchanges including Binance, KuCoin, and Huobi. @fozzydiablo conducted the analysis, which can be seen on Dune. FatManTerra gives Luna Foundation Guard the benefit of the doubt and acknowledges that some of the money may have hypothetically gone to them. He demanded “appropriate openness and accountability” as he put an end to the thread.
Do Kwon made it clear that, during the past two years, he has only received a small cash remuneration from TFL and that, in order to avoid “unnecessary finger pointing,” he decided to postpone accepting his founder’s tokens.
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