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Terra's Do Kwon Still Refuses to Release Collateral Logs Following $80 Million Pocketing Scandal

Fri, 06/10/2022 - 14:41
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Arman Shirinyan
Entire situation is shaping up like a massive scam conducted by Terra co-founder
Terra's Do Kwon Still Refuses to Release Collateral Logs Following $80 Million Pocketing Scandal
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Terra's LUNA and UST catastrophe is slowly coming to an end with more questionable facts about the company's work appearing in the public space. Following the appearance of scandals tied to Do Kwon in the space, users have started asking the reasonable question once again: what really happened with the massive Bitcoin collateral that should have saved UST and LUNA?

The Terra ecosystem community member and insider asked ‌about the fate of the BTC collateral that Do Kwon allegedly gave to market makers for realization, but at the same time, no information has been released regarding the way those funds were realized.

The community member asked reasonable questions about logs that should contain counterparties, conflicts of interest and details of OTC blocks. The co-founder of Terra then stated that they do not have any control over logs and will not be getting it because of confidentiality issues.

The answer that should have caused a flurry of questions regarding the real intentions of Do Kwon went through as the community was thinking about other things like the launch of Terra 2.0.

After the news of pocketing $80 million belonging to the project, previous Luna and UST investors started asking once again and even suggesting that he could have pocketed $3 billion.

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Unfortunately, there is no way to confirm nor disprove the potential pocketing of the entire collateral designed for defending the UST peg. The one thing that is clear is that Do Kwon will most likely bear responsibility for intentional or unintentional damage caused to Terra ecosystem investors.

The second version of Terra shows no signs of life, with the price of Luna token falling dramatically in the first days of trading.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.