Do Kwon Denies Cashing Out $2.7 Billion worth of LUNA before The Crash

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Do Kwon, Terraform Labs CEO, dismissed the allegations of that he cashed out $80 million every month consistently for nearly three years before the collapse of sister tokens Luna Classic, formerly LUNA, (LUNC) and TerraUSD Classic (USTC).

“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.”

Do Kwon,Terra CEO

The issue occurred on Saturday, June 11, after numerous unconfirmed reports surfaced claiming the CEO’s participation in draining the liquidity out of the two tokens, before the crash to purchase United States dollar-pegged stablecoin such as Tether (USDT).

The depegging of the USTC and the collapse of LUNA last month wiped out billions from the tokens’ market value leaving several investors and holders with huge losses. (Read more: What happened to USDT, UST, and LUNA)

Rumors about Kwon cashing out Terra’s crypto token reserves surfaced after a Twitter thread by a whistleblower from the Terra community forum, FatMan Terra, where he made allegations against the CEO, who is currently facing investigations from the US Securities and Exchange Commission (SEC) and the Seoul Metropolitan Police. 

On the other hand, Kwon stated that the crypto community must stay away from fueling the rumor until it was proven true.

“This should be obvious, but the claim that I cashed out $2.7B from anything is categorically false,” Kwon stated.

Further, he noted that the recent rumor of cashing out $80 million per month contradicts the allegations that he still holds most of his LUNA holdings, procured during the airdrop. 

Moreover, Kwon stated that his income over the past two years has only been a cash salary from TerraForm Labs (TFL).

After the LUNA and UST crash, Do Kwon proposed revitalizing the Terra Blockchain by resetting the network ownership to 1B token. On May 28th, Luna 2.0 was reactivated then immediately fell to $5.98 or down more than 70% after the blockchain Terra relaunched. (Read more: Luna V2 Price Pumps Then Dumps to $5 Immediately After Relaunch)

Binance CEO Changpeng “CZ” Zhao priorly questioned the proposal of hard forking the Terra blockchain as a means to revive the once-thriving Terra (LUNA) and TerraUSD (UST) ecosystems. (Read more: Luna, UST Update: Binance’ CEO is Disappointed with How Luna and UST Price Collapse is Handled)

This article is published on BitPInas: Do Kwon Denies Cashing Out $2.7 Billion worth of LUNA before The Crash

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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Shiela Bertillo

    BitPinas is the leading and most trusted blockchain and cryptocurrency news outlet that covers the Philippine blockchain and crypto scene. We are also writing general and international blockchain topics that are relevant to our audience.