{"id":62130,"date":"2022-05-27T14:28:57","date_gmt":"2022-05-27T11:28:57","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=62130"},"modified":"2025-09-05T16:08:20","modified_gmt":"2025-09-05T13:08:20","slug":"analyst-suspects-do-kwon-of-mirror-protocol-fraud","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/analyst-suspects-do-kwon-of-mirror-protocol-fraud\/","title":{"rendered":"Analyst suspects Do Kwon of Mirror Protocol fraud"},"content":{"rendered":"<p>The chief executive of Terraform Labs (TFL), Do Kwon, and venture capitalists manipulated the governance of the DeFi project Mirror Protocol and deceived retail investors. The analyst behind the pseudonym FatManTerra arrived at this conclusion.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">\ud83e\uddf5\ud83d\udc47 Here&#8217;s a deep dive into chain data suggesting Mirror Protocol, TFL&#8217;s &#8216;decentralized&#8217; stock exchange, is really just a farce designed to enrich Do Kwon\/VCs while manipulating governance and screwing over retail. Thank you for being so bad at hiding on-chain moves, Do. \ud83e\uddf5\ud83d\udc47<\/p>\n<p>\u2014 FatMan (@FatManTerra) <a href=\\\"https:\/\/twitter.com\/FatManTerra\/status\/1529391352856838144?ref_src=twsrc%5Etfw\\\">May 25, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>He identified an Ethereum wallet through which yield-farming smart contracts in Mirror Protocol were initiated. The address was linked to the cross-chain bridge Wormhole, <a href=\"https:\/\/u1f987.com\/en\/news\/media-jump-trading-to-acquire-infrastructure-company-certus-one\">belonging to Jump Trading<\/a>.<\/p>\n<p>At times the address held a dominant share of Mirror&#8217;s Ethereum liquidity pool, FatManTerra noted.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cThus, they received the majority of rewards in MIR tokens, which allowed them to have disproportionate influence over governance decisions,\u201d the analyst said.<\/p>\n<\/blockquote>\n<p>This wallet and associated addresses distributed assets to create the illusion of decentralized governance of the protocol, FatManTerra asserts.<\/p>\n<p>One of the addresses sent assets to the organisation dao5, for which Kwon serves as an official adviser, the expert noted.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-conversation=\\\"none\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Here&#8217;s a fun little bonus bit. One of the addresses above (<a href=\\\"https:\/\/t.co\/Dgz46MjBXU\\\">https:\/\/t.co\/Dgz46MjBXU<\/a>) bridged over money to this Ethereum address (<a href=\\\"https:\/\/t.co\/ETy7vBUqw3\\\">https:\/\/t.co\/ETy7vBUqw3<\/a>) that owns the \\&#8221;dao5.eth\\&#8221; ENS name. Uh oh\u2026 What&#8217;s this? (12\/19) <a href=\\\"https:\/\/t.co\/UYF5DdBV5t\\\">pic.twitter.com\/UYF5DdBV5t<\/a><\/p>\n<p>\u2014 FatMan (@FatManTerra) <a href=\\\"https:\/\/twitter.com\/FatManTerra\/status\/1529391373065003010?ref_src=twsrc%5Etfw\\\">May 25, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>All of these addresses evidently had access to substantial capital, FatManTerra argues, pointing to multi-million-dollar operations with Mirror&#8217;s synthetic products and other assets in the Terra ecosystem. As an example, he cited a transaction of 750 million UST.<\/p>\n<p>Collecting the data, the analyst concluded that \u201cTFL and related entities secretly control a large portion of Mirror&#8217;s governance powers without any proper disclosure.\u201d<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cThere also appears to be hand-in-glove collaboration between TFL and Jump to move capital out of the Mirror ecosystem without fair disclosure to retail investors, whom the protocol was pitched as a fair, decentralised alternative for their stock-market savings,\u201d FatManTerra wrote.<\/p>\n<\/blockquote>\n<p>According to him, the findings corroborate much of the information previously provided by a Jump Trading employee who spoke on condition of anonymity.<\/p>\n<p>Earlier reports noted that <a href=\"https:\/\/u1f987.com\/en\/news\/media-terraform-labs-chief-behind-failed-basis-cash-stablecoin-project\">Kwon was one of the co-founders<\/a> of the failed algorithmic stablecoin Basis Cash (BAC).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CEO Terraform Labs (TFL) Do Kwon and venture capitalists manipulated the governance of the DeFi project Mirror Protocol and deceived retail investors. The analyst behind the pseudonym FatManTerra arrived at this conclusion.<\/p>\n","protected":false},"author":1,"featured_media":62131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[852],"class_list":["post-62130","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=62130"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62130\/revisions"}],"predecessor-version":[{"id":62132,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62130\/revisions\/62132"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/62131"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=62130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=62130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=62130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}