Terra founder Do Kwon has refuted claims that he cashed out $2.7 billion from the project before the fiasco that led to UST losing peg and LUNA crashing to $0. How Did Kwon Manage to Drain Funds? Numerous unconfirmed reports surfaced on Saturday that Do Kwon siphoned off $2.7 billion from the project before the collapse of both LUNA and UST in the crypto markets. In a Twitter thread by a Terra insider with affiliations to the Terra Research Forum, FatManTerra shared the alleged details on how Kwon managed to drain funds. FatMan alleges that Do Kwon had used Degenbox, a borrowing protocol in the Abracadabra ecosystem, allowing users to stake collateral to buy UST, put it into Anchor, then used the staked UST to borrow more UST, put it into Anchor once again, and so forth a loop, while artificially maintaining the liquidity. 🧵 Some of you thought $80m per month was bad. That's nothing. Here's how Do Kwon cashed out $2.7 billion (33 x $80m!) over the span of mere months thanks to Degenbox: the perfect mechanism to drain liquidity out of the LUNA & UST system and into hard money like USDT. (1/13) — FatMan (@FatManTerra) June 11, 2022 Hours later, Do Kwon took it to Twitter to completely refute the claims, slamming them as “categorically false.” Kwon Denies Allegations of Cashing Out $2.7B Kwon pointed out that there are two contradicting narratives about him circulating on social media. The first is of his crypto wallets being do...
