{"id":62783,"date":"2022-06-12T10:30:16","date_gmt":"2022-06-12T07:30:16","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=62783"},"modified":"2025-09-05T20:02:45","modified_gmt":"2025-09-05T17:02:45","slug":"do-kwon-denies-allegations-of-withdrawing-2-7-billion-from-the-terra-ecosystem-ahead-of-its-collapse","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/do-kwon-denies-allegations-of-withdrawing-2-7-billion-from-the-terra-ecosystem-ahead-of-its-collapse\/","title":{"rendered":"Do Kwon denies allegations of withdrawing $2.7 billion from the Terra ecosystem ahead of its collapse"},"content":{"rendered":"<p>Terraform Labs head Do Kwon has disputed reports that he allegedly withdrew billions of dollars from the Terra ecosystem before its collapse. He called such claims \u201ccategorically false.\u201d<\/p>\n<p>Earlier, analyst FatMan claimed that the strategy <a href=\"https:\/\/medium.com\/abracadabra-money\/our-ust-strategy-the-first-application-of-the-magic-potentialities-of-degenbox-ea35f13d6b5e\">Degenbox $UST-$MIM<\/a> on the Abracadabra platform enabled Do Kwon to withdraw more than $2.7 billion in UST from Terra over a period of months.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\ud83e\uddf5 Some of you thought $80m per month was bad. That\u2019s nothing. Here\u2019s how Do Kwon cashed out $2.7 billion (33 x $80m!) over the span of mere months thanks to Degenbox: the perfect mechanism to drain liquidity out of the LUNA &#038; UST system and into hard money like USDT. (1\/13)<\/p>\n<p>\u2014 FatMan (@FatManTerra) <a href=\"https:\/\/twitter.com\/FatManTerra\/status\/1535623662153437185?ref_src=twsrc%5Etfw\">June 11, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cSome of you thought $80m per month was bad. That\u2019s nothing. Here\u2019s how Do Kwon cashed out $2.7 billion (33 x $80m!) over a span of months thanks to Degenbox: the perfect mechanism to drain liquidity out of the LUNA and UST system into hard money like USDT,\u201d he wrote.<\/p>\n<\/blockquote>\n<p>FatMan explained that the strategy offered high returns and was promoted by \u201cTerra influencers.\u201d By his account, it created the liquidity needed to move funds \u2014 thanks to strong demand enabling the exchange of UST for MIM without breaching the peg.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Here\u2019s the total amount of MIM Do Kwon was able to cash out through the MIM\/UST pool \u2014 without even moving the peg! $2,719,132,772.01, to do with what he pleases. No need to dump LUNA or sell UST on exchanges \u2014 he drummed up liquidity from all of you. (7\/13) <a href=\"https:\/\/t.co\/vRVve3WRsj\">pic.twitter.com\/vRVve3WRsj<\/a><\/p>\n<p>\u2014 FatMan (@FatManTerra) <a href=\"https:\/\/twitter.com\/FatManTerra\/status\/1535623673293549568?ref_src=twsrc%5Etfw\">June 11, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The analyst noted that MIM was eventually swapped for USDT and USDC, and then <a href=\"https:\/\/dune.com\/fozzydiablo\/TFL-Exit-Liquidity\">sent<\/a> to addresses of centralised exchanges, including Binance, KuCoin and Huobi.<\/p>\n<p>FatMan called on Terraform Labs to explain the purpose of these operations, disclose the sources of funds into the <a href=\"https:\/\/u1f987.com\/en\/news\/luna-foundation-guard-drains-3bn-from-reserve-to-rescue-ust\">Luna Foundation Guard reserve<\/a>, and publish data on the deals the company conducted to stabilise the price of UST.<\/p>\n<p>In response, Do Kwon stated that his sole income over the past two years was a \u201cnominal monetary salary\u201d at Terraform Labs. He said he delayed taking most of the founder tokens because he did not need them.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">2\/ Two contradictory claims seem to exist where:<\/p>\n<p>1. Do\u2019s wallets are doxxed, and he still owns most of his luna through the airdrop<br \/>2. Do dumped all his tokens to make billions<\/p>\n<p>A lane should ideally be picked<\/p>\n<p>\u2014 Do Kwon \ud83c\udf15 (@stablekwon) <a href=\"https:\/\/twitter.com\/stablekwon\/status\/1535811517546786816?ref_src=twsrc%5Etfw\">June 12, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In May 2022, FatMan said that Kwon and venture capitalists manipulated the governance of the DeFi project Mirror Protocol and <a href=\"https:\/\/u1f987.com\/en\/news\/analyst-suspects-do-kwon-of-mirror-protocol-fraud\">deceived retail investors<\/a>.<\/p>\n<p>Bloomberg reported that the U.S. Securities and Exchange Commission <a href=\"https:\/\/u1f987.com\/en\/news\/media-sec-opens-investigation-into-terrausd-ust-stablecoin\">initiated an investigation<\/a> into the algorithmic stablecoin UST.\u00a0<\/p>\n<p>Follow ForkLog\u2019s bitcoin news on our <a href=\"\/\/telegram.me\/forklog\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Terraform Labs head Do Kwon has denied reports that he allegedly withdrew billions of dollars from the Terra ecosystem before its collapse. He called such claims &#8216;categorically false&#8217;.<\/p>\n","protected":false},"author":1,"featured_media":62784,"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-62783","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\/62783","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=62783"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62783\/revisions"}],"predecessor-version":[{"id":62785,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62783\/revisions\/62785"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/62784"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=62783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=62783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=62783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}