Prominent entities implicated as whistleblowers lift lid on Terra scandal

Twitter idiosyncratic @FatManTerra dropped a bombshell connected May 23, alleging that the events astatine Terra LUNA were a transgression enactment orchestrated by cardinal manufacture figures and entities.

Previously, the ascendant communicative had been 1 of misfortune and oversight regarding vulnerabilities successful algorithmic stablecoins.

However, @FatManTerra claims whistleblowers person revealed “deeply troubling things,” invalidating the erstwhile narrative.

In the past 48 hours I person been contacted by respective whistleblowers. These radical would similar to and volition enactment anonymous. I person learned immoderate profoundly troubling things and determination is simply a batch much to travel – this is conscionable the precise beginning. Here is immoderate of what I tin archer you.

— FatMan (@FatManTerra) May 23, 2022

From atrocious to worse

In aboriginal May, astir $60 billion vanished from the Terra ecosystem. The origin was the UST stablecoin losing its $1 peg, which subsequently triggered a driblet successful LUNA‘s terms owed to the algorithmic mechanisms that equilibrium some pools of tokens.

The fallout has had important repercussions crossed the crypto manufacture and beyond, including speech of stricter regularisation to forestall a repeat, the wide nonaccomplishment of assurance successful integer assets, and astir of all, the devastation of lives.

@FatManTerra precocious reported connected the quality interaction of the scandal. As expected, astir respondents reported terrible fiscal consequences and adverse effects connected intelligence health.

The contented of self-harm and termination was besides broached, with 41% of victims saying they had considered these actions.

However, acold from being a bid of unfortunate events starring up to this point, @FatManTerra makes respective allegations of mismanagement, manipulation, and collusion.

The allegations

@FatManTerra made 4 allegations based connected reports from whistleblowers. However, helium doesn’t spell into elaborate explanations, adding that helium “cannot say.” Nonetheless, helium is adamant that “justice is coming.”

There is acold much that I cannot say, but cognize that I know, and cognize that justness is coming, due to the fact that this clip I deliberation you went excessively acold – this clip you killed radical – idiosyncratic has to combat for them. If I go, idiosyncratic volition instrumentality my place. This is thing – conscionable the start. Go time.

— FatMan (@FatManTerra) May 23, 2022

The archetypal allegation involves infrastructure developer Jump, who @FatManTerra claims offered Terra a bail-out deal successful May 2021, which progressive repayments of millions successful LUNA tokens each month.

He added that Jump is implicated successful manipulating retail users “into losing billions connected UST but particularly LUNA” — pointing the digit astatine Jump CEO Kanav Kariya.

@KanavKariya I cognize who controls you down the scenes (B); I cognize astir your Slack radical having a 14 time retention window

— FatMan (@FatManTerra) May 23, 2022

Also progressive successful the allegations is FTX CEO Sam Bankman-Fried and a “handshake deal” concerning Solana-based decentralized speech Serum. Again, nary further details were fixed by @FatManTerra.

@SBF_FTX I cognize astir the 30% Serum handshake woody with Jump and what you did to retail investors after

— FatMan (@FatManTerra) May 23, 2022

Investor and Crypto Banter big Miles Deutscher called the revelations deep, if true. He called for further grounds to backmost up the claims but added that “shady worldly was going on.”

Do Kwon had antecedently projected a fork to revive the Terra ecosystem. However, the program looks successful uncertainty arsenic Korean authorities intervened connected May 23 by freezing the assets of Luna Foundation Guard connected charges of embezzlement.