Random or non-random reset of Terra
2023.01.10 07:45
By Kristina Sobol
Budrigannews.com – The company Terraform Labs (TFL), which was the creator of the now-defunct algorithmic stablecoin TerraUST (USTC), and its co-founder Do Kwon are once again in the news for allegedly carrying out a smear campaign and making threats against a member of their own community.
The genesis airdrop, which was planned after the initial ecosystem collapsed as a result of its stablecoin depeg, marked the beginning of everything in May. TFL claimed in a Twitter thread that Jimmy Le, a Terra community member entrusted with community funds, has refused to return genesis airdrop funds.
The new token, which is now known as LUNA, was given to people who still owned the original native token, which is now known as LUNAC, according to the thread. However, individual signers of CW3 multi-sig wallets received LUNA airdrops that they shouldn’t have because of a mistake.
TFL asserted that, with the exception of Jimmy, all other multisig singers returned the accidental airdrop, despite their best efforts.
5/ All Ozone and Interchain Incentives multi-sig signers have since returned 100% of the $LUNA they received in the Genesis airdrop where technically possible — except for Jimmy.
— Terra Powered by LUNA (@terra_money) January 5, 2023
On January 9, Jimmy, the person who is accused of not returning the accidental airdrop, responded to the TFL tweet thread and accused them of smearing him. He claimed that the company has also lied about their interactions and has purposefully chosen to present one side of the story. He claimed that he had never refused to return the accidental airdrop, but that the tokens had caused him to be concerned about the tax implications.
He also clarified that none of the airdropped tokens have ever been sold or undelegated, and that he transferred the liquid portion of the airdrop—roughly $1 million to 1.5 million—to the multisig TFL specified. However, he later discovered that the chain upgrade enabled the manual transfer of vesting tokens to the community pool rather than resetting his vesting balances to the pool. He re-examined his tax concerns as a result of this.
On August 1, 2022, I discovered that the chain upgrade did not reset my vesting balances to the community pool, but rather enabled a feature that enabled manual transfer of vesting tokens to the community pool. pic.twitter.com/mlXjUQGW7N
— jimmy (@stablejim) January 9, 2023
Jimmy asserted that tax-related conversations continued with the TFL until December 2022, when the TFL abruptly published the Twitter thread on January 6. He said that the smear campaign caught him off guard because they were working on a settlement at the time.
I was caught off guard by TFL’s sudden public post because we were in the process of reaching an agreement. Since then, I have received threats of law enforcement action and threats to my personal safety, which has been very shocking and distressing to me. pic.twitter.com/DvYwQk5EUZ
— jimmy (@stablejim) January 9, 2023
Additionally, he is alleged to have shared private messages from Kwon, a co-founder of TFL, threatening him with a variety of consequences, including his own safety. The following message was read:
“Just make it right, it’s not worth the hassle and endangerment this will bring to your life and/or reputation going forward. That’s all I’m gonna say anymore on the subject. I will NOT be involved in hunting you down btw. I don’t care that much. Just thought I’d give u heads up. Good luck. You’ll prob need lots of it if you try to abscond.”
The crypto community was enraged by Jimmy’s clarification and the alleged messages from Kwon, particularly Fatman, a Twitter handle devoted to the Terra-LUNA mess.
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Fatman praised Jimmy and lashed out at Kwon, stating that a person who has attempted to illegally sell US securities and is currently on the run from Interpol should not be afraid to ask for legal and tax advice. “Don’t take financial advice from Do Kwon,” he continued. Every time, it’s the right play.”
