The allegations made on June 11 claim that Kwon withdrew around $2.7B from Terra for the past three years.
The CEO of Singapore-based Terra Labs Do Kwon has reportedly been accused of withdrawing $80M a month. According to various claims, he has taken part in draining liquidity out of LUNC and USTC around 30 times in the past 36 months as a significant amount of money - $2.7 billion - was cashed out via Abracadabra Money’s Degenbox.
However, Kwon denied the claims and added that such statements are “categorically false.” On top of that, the CEO implied that the accusations are illogical due to the fact that he still owns the majority of LUNA holdings that were obtained just after the airdrop. He advised the public to not believe everything that is said and stated:
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“This should be obvious, but the claim that I cashed out $2.7B from anything is categorically false.”
Kwon stated that one of the reasons why he hasn’t given much comment on the discussion is because he didn’t want to look like a victim, adding that money is not a top priority to him.
The CEO mentioned that for the past two years the only income that he managed to get has been a nominal cash salary from TerraForm Labs (TFL).
The allegations came on June 11 when one of Twitter’s users named FatManTerra posted a tweet stating that Kwon withdrew the money by using Abracadabra.money for significant amounts of leverage.
Earlier this year, South Korea’s National Tax Service issued Do Kwon a fine of 100 billion won or $78 million for avoiding taxes. The official sources implied that the CEO didn’t accept the way cryptocurrency taxes were handled in the country.
In other news, on June 9, one of Terra’s core designers Mr. B gave Kwon a warning to lower the interest rate after it was changed from 3.6% to 20%.
“I foresaw a collapse from the time we designed it. I informed CEO Kwon in advance, but he said he did not listen at all.”
