Terra’s Do Kwon has refuted claims that he cashed out $2.7 Billion from the project before LUNA’s and UST’s collapse.
Do Kwon explained that for the last two years, he has only earned a nominal cash salary from Terraform Labs.
He also adds that he incurred losses during UST’s and LUNA’s collapse.
The $2.7 Billion was allegedly cashed out through the Abracadabra Protocol using Degenbox.
The Founder of Terra, Do Kwon, has released a statement via Twitter refuting claims that he siphoned off $2.7 billion from the project before the collapse of both LUNA and UST in the crypto markets.
Do Kwon refutes the claims by stating that they are false. He also goes on to highlight that there are two contradicting narratives about him circulating on social media. The first is of his crypto wallets being doxxed, thus proving he is yet to sell his LUNA, and the second is of him dumping all his tokens to make billions. As a result, Do Kwon requests that his detractors pick one narrative, as seen in the following tweets.
2/ Two contradictory claims seem to exist where:
1. Do’s wallets are doxxed, and he still owns most of his luna through the airdrop 2. Do dumped all his tokens to make billions
I’ve Earned a Nominal Cash Salary from Terraform Labs for the Last Two Years – Do Kwon.
Do Kwon also explained that for the last two years, he did not take any of his founder’s tokens and received a nominal cash salary from Terraform Labs. He explained:
To reiterate, for the last two years the only thing ive earned is a nominal cash salary from TFL, and deferred taking most of my founder’s tokens because a) didn’t need it and b) didn’t want to cause unnecessary finger pointing of “he has too much”
Do Kwon Also Lost What He Had During UST’s and LUNA’s Crash
Furthermore, the Terra Founder revealed that he also incurred losses due to the LUNA and UST collapse. He said:
Hope that’s clear – I didn’t say much because I don’t want to seem like playing victim, but I lost most of what I had in the crash too. I’ve said this multiple times but I really don’t care about money much.
How Do Kwon Allegedly Cashed Out the $2.7 Billion
Circling back at the theory that Do Kwon cashed out $2.7 billion in LUNA and UST before the two collapsed, an analysis by Terra Community member Fatman hints that moving the funds was made easier through the Abracadabra Protocol using Degenbox. He explained:
Enter Abracadabra’s Degenbox: a borrowing protocol where people can loop stablecoin buys. You can stake collateral to buy UST, put it into Anchor, then use your aUST to borrow more UST, put it into Anchor again… You get the drill. It’s Anchor on steroids…
This created incredibly thick, near-immovable liquidity near the top of the peg zone (the $0.98 to $1.00 range). In a nutshell, it would allow for someone to cash out billions of UST for MIM at a 1:1 rate without disturbing the peg – all thanks to inorganic demand.