The cryptocurrency market is a digital casino where some people become millionaires overnight whereas, many lose everything they have. You must be aware of the infamous Terra LUNA crash, where the crypto went from US$118 to US$0.17 within a month and many people who had high hopes for this cryptocurrency saw their dreams shattering into pieces. Since the crash in May 2022, this cryptocurrency has been in the headlines. Now, Do Kwon is accused of cashing out US$2.7 billion in the months leading up to the Luna UST collapse, though this has yet to be verified. This is a hot topic in the crypto realm, and it's trending across multiple platforms.
The entrepreneur asked the cryptocurrency community not to spread the rumor until it was proven. "This should be obvious, but the claim that I cashed out US$2.7B from anything is categorically false," Do Kwon wrote on Twitter. Kwon went on to say that the recent allegations against him of withdrawing US$80 million per month contradict his statements. He also said that he is still in the possession of most of his holdings for LUNA.
The Terra 2.0 rebirth token has been extremely lackluster in terms of market performance during the past two weeks. However, as Bitcoin.com News reported six days ago, a myriad of decentralized finance (Defi) protocols have re-joined the ecosystem.
Terra's 2.0 chain has roughly US$1.32 billion locked in the Stader Defi application according to defillama.com stats. The Terra Classic chain still has a US$10.54 million total value locked in Defi today as well, with US$3.11 million held on Terraswap and US$2.47 million locked into Anchor.
JBTC has reported on the collapse and de-peg of algorithmic stablecoin UST and LUNC (previously LUNA). The agency reported that the US SEC reportedly discovered that US$80 million was being pulled out of Terra's funds monthly and sent to different wallet addresses for operating expenses. The SEC notes that Kwon started the US$80 million withdrawals a few months before the collapse of Terraform Lab's sister tokens, LUNC (formerly LUNA) and UST. This activity is being considered suspicious and related to money laundering. The US$80 million flowed out to dozens of cryptocurrency wallets, yet according to a key Terra employee, who was an informant to the SEC, Kwon had not received any official payment from Terraform.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.