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Terra’s Do Kwon Denies Cashing Out $2.7 Billion

Sun, 06/12/2022 - 13:31
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Alex Dovbnya
Terraform Labs CEO Do Kwon has attempted to set the record straight about the most recent rumors
Terra’s Do Kwon Denies Cashing Out $2.7 Billion
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Terraform Labs CEO Do Kwon claims that rumors of him cashing out $2.7 billion worth of crypto prior to the collapse of his project.

Kwon says that he only earned a dollar-denominated salary over the last two years. The controversial South Korean entrepreneur claims that he deferred taking most of the founder’s tokens since he wanted to avoid potential conflict of interest.

Moreover, Kwon has now revealed that he lost most of his own money during the crash.

After routinely calling his critics “poor” on Twitter, the cryptocurrency developer now says that he doesn’t care much about money, attracting more mockery on Twitter.  

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The rumors were started by self-proclaimed Terra insider FatMan, who analyzed Terraform’s outflows in a recent thread. Kwon was allegedly capable of cashing out billions worth of UST without even moving the peg of the now-failed stablecoin with the help of Abracadabra's borrowing protocol called Degenbox.   

Following the $60 billion collapse of Terra, some decried the lack of accountability. As reported by U.Today, Lebanese-American statistician Nassim Taleb recently opined that the Kwon was actually more dangerous than the late fraudster Bernie Madoff. The “Black Swan” called for putting Kwon behind bars in order to prevent him from launching other projects.

On June 9, another version of the Luna token, which was supposed to revive the project, dropped to yet another all-time low of $2.1.

While Kwon, is unlikely to face jail time, his country has attracted severe scrutiny from regulators in South Korea and other countries. As reported by U.Today, the U.S. Securities and Exchange Commission reportedly launched another investigation into Terraform Labs.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.