If you guys don’t know it already, Do Kwon is the CEO of Terraform Labs and also one of the co-founders of Terra. He is presently being investigated by the US Securities and Exchange Commission due to millions worth LUNA being sold. The US administrative organization is researching the illegal activities of Do Kwon. His employees, in the investigation, stated that Do Kwon used to cash out $80 million every month.
The agency stated that the US SEC supposedly found that $80 million was being pulled out monthly out of Terra’s finances and sent to various wallet addresses for working expenses.
The SEC took notes about the fact that Do Kwon began the $80 million withdrawals a couple of months before the crash of Terraform Lab’s token, LUNC (previously known as LUNA) and UST. This money withdrawal is being viewed as suspicious and is said to be associated with money laundering. The $80 million streamed out to many crypto wallets, yet as indicated by a key Terra worker, who was a witness to the SEC, Do Kwon haven’t received any official payment from Terraform Labs.
The rumor about this withdrawal got the spotlight when a Twitter thread was shared by FatManTerra. The thread contains some details on how Do Kwon, alongside Terra influencers, figured out the way to drain assets while artificially keeping up with the liquidity.
Do Kwon, on the other hand, discredited the case of cashing out $80 million consistently for almost three years. Sharing his side of the story, Kwon expressed that the rumor of withdrawing $80 million every month is false as he actually holds the majority of his LUNA holdings, obtained during the airdrop. Besides, Kwon further repeated that his pay throughout the course of recent years has just been a cash payment from TerraForm Labs (TFL).
While these things are being heard, on the other side, even after the relaunch of the Terra chain, LUNA Classic (LUNC) and LUNA 2.0 have completely failed to recover and the prices are still dropping. The crypto experts have a negative point of view towards the price of LUNA 2.0. They stated that there is a chance of a dip below $1.5, which is about 50% below the ongoing level of price and this could happen soon in LUNA 2.0. The exchange volume has dropped, and financial backers have lost interest in the token.
Experts have indicated a negative trend in LUNA 2.0 cost. Provided that if only the prices of LUNA 2.0 crosses the $4.5 level we could possibly observe a positive trend again. So, let’s hold on and see what is waiting in the future for both Do Kown and Terra.