Do Kwon denies fresh allegations of withdrawing $2.7B from Terra ecosystem via Degenbox

Do Kwon was recently accused of withdrawing $80 cardinal a period from the Terra ecosystem starring up to the clang — caller allegations assertion this happened much than 33 times, and a staggering $2.7 cardinal was taken retired of the strategy done Degenbox by Abracadabra Money.

Do Kwon has publically denied the allegations, calling them “categorically false,” aft making his Twitter relationship nationalist again.

The Allegations

According to the allegations, Do Kwon utilized Abracadabra.money and a staking loop that allows utmost levels of leveraging to retreat the wealth arsenic described by FatManTerra:

“You tin involvement collateral to bargain UST, enactment it into Anchor, past usage your aUST to get much UST, enactment it into Anchor again… You get the drill. It’s Anchor connected steroids.”

The staking loop is besides employed by different derivative tokens specified arsenic stETH. These precocious output strategies connection insanely precocious rewards but make highly volatile investments with ever-increasing liquidation risks. FatManTerra alleges that Do Kwon undertook specified a strategy and frankincense gambled with the aboriginal of Terra for his ain idiosyncratic gain.

FatManTerra questioned however Do Kown could person sold the $80 cardinal tranches of tokens helium acquired without crashing the terms of either $LUNA oregon $UST since determination is simply a deficiency of liquidity to sorb the selling pressure.

However, FatManTerra claimed that Degenbox’s popularity had built up capable “near-immovable liquidity” that allowed Do Kwon to person billions of $UST for $MIM.

Here's the full magnitude of MIM Do Kwon was capable to currency retired done the MIM/UST excavation – without adjacent moving the peg! $2,719,132,772.01, to bash with what helium pleases. No request to dump LUNA oregon merchantability UST connected exchanges – helium drummed up liquidity from each of you. (7/13) pic.twitter.com/vRVve3WRsj

— FatMan (@FatManTerra) June 11, 2022

Do Kwon past allegedly sold the $MIM tokens for $USDC and $USDT.

Do Kwon erstwhile claimed:

“If you support connected utilizing centralized, unchangeable coins yet they are going to rug you… truthful you mightiness arsenic good commencement utilizing UST.”

It is highly antithetic that Do Kwon, who has publically stated that investors should lone spot decentralized stablecoins specified arsenic $UST, would acquisition either $USDC oregon $USDT.

The beneath representation shows the worth of $MIM tokens that were converted into centralized stablecoins. These tokens were past sent to exchanges specified arsenic Binance, KuCoin, and Huobi to currency out.

Source: Twitter

The information was analyzed by @fozzydiablo and tin beryllium viewed connected Dune. FatManTerra allows for the payment of the uncertainty and accepts that immoderate of the wealth could theoretically person gone to Luna Foundation Guard. He ended his thread with a request for “proper transparency and accountability.”

Call to action:
– Clarify the intent of these immense trades.
– Publish a PDF breaking down the sources of LFG funds, since they were meant for UST holders.
– Publish commercialized logs and counterparties for the 'peg defence' (you person inactive provided zero grounds for immoderate of it!) (12/13)

— FatMan (@FatManTerra) June 11, 2022

Do Kwon’s nationalist response

CryptoSlate reached retired to Do Kwon straight for clarification connected the allegations, but helium declined to remark and shared an email code for Terraform Labs’ comms squad instead.

Do Kwon posted a nationalist denial connected Twitter.

1/ This should beryllium obvious, but the assertion that I cashed retired $2.7B from thing is categorically false

— Do Kwon (@stablekwon) June 12, 2022

He said radical are making contradictory allegations regarding his holdings and spreading “falsehood,” which lone “adds to the symptom of everyone who has lost.”

Do Kwon clarified that his lone income successful the past 2 years has been a nominal currency wage from TFL and that helium chose to defer taking his founder’s tokens to debar “unnecessary digit pointing.”

3/ To reiterate, for the past 2 years the lone happening ive earned is simply a nominal currency wage from TFL, and deferred taking astir of my founder’s tokens due to the fact that a) didn’t request it and b) didn’t privation to origin unnecessary digit pointing of “he has excessively much”

— Do Kwon (@stablekwon) June 12, 2022

The station Do Kwon denies caller allegations of withdrawing $2.7B from Terra ecosystem via Degenbox appeared archetypal connected CryptoSlate.