The whole situation is shaping up like a big scam perpetrated by the co-founder of Terra
Terra’s LUNA and UST mayhem is slowly coming to an end with more questionable facts about the company’s work in the public space. after the presence of scandals Tied to Do Kwon in the space, users have once again started asking the pertinent question: what exactly happened to the massive Bitcoin collateral that UST and LUNA should have saved?
The Terra Ecosystem community member and insider asked about the fate of the BTC collateral that Do Kwon allegedly gave to acquire market makers, but also, about how those funds were obtained. No information has been released.
Still crazy to me that the LFG logs are not issued. A preferential cashout could have happened at any time – whether Kwon was selling himself, kicking out VC, or even MM cleaning up UST on his book. It’s shaping up to be a $3b fraud. We need to know what happened. pic.twitter.com/0taiQU5rvK
— Fatman (@FatManTerra) 10 June 2022
Community member asked pertinent questions about logs which should include details of counterparty, conflict of interest and OTC block. The Terra co-founder then stated that he had no control over the logs and would not obtain it due to privacy issues.
The answer that should have sparked a flurry of questions about Do Kwon’s actual intentions came as the community was mulling over things like the launch of Terra 2.0, among other things.
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After news of $80 million being pocketed related to the project, previous Luna and UST investors began asking once again and even suggested he could pocket $3 billion.
Unfortunately, there is no way to confirm or deny the possible pocketing of the entire collateral designed to protect the UST peg. One thing that is clear is that Do Kwon will bear the highest responsibility for any damages caused, intentionally or unintentionally, to Terra Ecosystem investors.
The second version of Terra shows no signs of life, with the Luna token price dropping dramatically in the first days of trading.
