The embattled chief govt of Terraform Labs is adamantly denying whispers that he cashed out billions of {dollars} value of Terra (LUNA) and TerraUSD (UST).
Rumors are circling on Twitter that Terra founder Do Kown used a borrowing protocol known as “Abracadabra’s Degenbox” to money out of LUNA and UST and into the stablecoins Tether (USDT) and USD Coin (USDC).
Kwon says the declare is “categorically false.”
“Two contradictory claims appear to exist the place:
1. Do’s wallets are doxxed, and he nonetheless owns most of his LUNA by means of the airdrop
2. Do dumped all his tokens to make billions
A lane ought to ideally be picked. To reiterate, for the final two years, the one factor I’ve earned is a nominal money wage from Terraform Labs, and deferred taking most of my founder’s tokens as a result of a) didn’t want it and b) didn’t need to trigger pointless finger-pointing of ‘he has an excessive amount of.’
Hope that’s clear – I didn’t say a lot as a result of I don’t need to seem to be enjoying sufferer, however I misplaced most of what I had within the crash too. I’ve mentioned this a number of instances however I actually don’t care about cash a lot.”
Kwon has confronted a torrent of authorized and public crises up to now month for the reason that Could collapses of Terra and UST, which prompted tens of billions of {dollars} in market losses.
Final week, a courtroom in New York Metropolis dominated that the CEO can be required to cooperate with an inquiry issued by the U.S. Securities and Change Fee (SEC).
The SEC first subpoenaed Kwon in October whereas he was attending the Messari Mainnet convention for extra details about the decentralized finance Mirror Protocol (MIR), which gives the flexibility to commerce artificial variations of conventional shares.
Do Kwon initially sued the SEC citing a number of technicalities however misplaced his case again in February. Final week’s ruling denied his enchantment.
And in late Could, a information report indicated South Korean authorities are contemplating bringing Ponzi scheme costs towards Kwon.
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