ICYMI: Do Kwon Allegedly Cashed Out $2.7 Billion Months Before Crash
2022.06.13 00:16
ICYMI: Do Kwon Allegedly Cashed Out $2.7 Billion Months Before Crash
- Controversies surrounding Do Kwon have surfaced.
- Word is circulating that Kwon has cashed out funds consistently from Terra before the collapse of the LUNC token and the UST stablecoin.
- Analysts believe that there is bullish potential for LUNA Classic (LUNC).
In case you missed it: Controversies surrounding Do Kwon, the founder of the collapsed Luna Classic (LUNC) token and the newly launched LUNA 2.0, have surfaced. Word is circulating that Kwon has cashed out funds consistently from Terra before the collapse of the LUNC token and the UST stablecoin.
The de-peg of UST from the dollar and the collapse of the LUNA Classic token wiped out several billions from the token’s market value. Now, the SEC has discovered that Kwon was cashing out approximately $80 million from Terraform Labs every month leading up to the project’s collapse.
It is believed that Kwon pulled out a total of $2.7 billion from the Terra Network before the crash, which implies that the CEO siphoned funds off of the project and that he was aware of the fact that UST would potentially de-peg.
A whistleblower from the Terra community named FatManTerra has made allegations against the CEO, who is currently facing investigations from both the U.S. Securities and Exchange Commission (SEC) and the Seoul Metropolitan Police.
The whistleblower revealed that Kwon withdrew $80 million from Terra 33 times, which takes the total withdrawn amount to $2.7 billion. FatManTerra added that the amounts were withdrawn over just a few months through Degenbox leading up to the de-peg and subsequent crash.
Following the crash, LUNA 2.0 was launched in an effort to revive the Terra ecosystem. In the early stages of the launch, the token had an impressive, but short-lived, bull rally before dropping to its bottom.
LUNA establishes potential bottom (Source:CoinMarketCap)
Now, after evaluating the price trend of LUNA 2.0, analysts have noted that the token has bullish potential after hitting its bottom recently.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.
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