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Terra's Do Kwon caught lying about 42 million LUNA shadow wallet

  • Do Kwon used his shadow wallet and employed governance manipulation, misinforming users that the new Terra chain would be community-owned. 
  • After stating that Terraform Labs has zero LUNA tokens on several instances, whistleblowers have revealed 42 million LUNA holdings of Do Kwon. 
  • Over $200 million worth of LUNA tokens is held by several shadow wallets of Do Kwon and Terraform Labs. 

A whistleblower from the Terra community forum, FatManTerra, has unearthed Do Kwon's 42 million LUNA tokens, hidden in a shadow wallet. According to FatManTerra, the CEO of Terraform Labs kept lying to the community by assuring that the new Terra chain would be community-owned and that the organization holds zero LUNA tokens. 

Also read: LUNA 2.0 price recovers as Do Kwon may not go to prison

Do Kwon's shadow wallet holds $200 million worth of LUNA

Do Kwon, the CEO and co-founder of Terraform Labs, offered a revival plan for the rebirth of Terra after the colossal crash of sister tokens LUNA Classic (formerly LUNA) and TerraUSD (UST). Kwon assured the Terra community that Terraform Labs holds zero LUNA tokens, and the new chain would be entirely driven and owned by the community. 

These statements have been contradicted by Terra community whistleblowers, though. Do Kwon apparently held 42 million LUNA tokens worth $200 million in shadow wallets. "FatManTerra," an anonymous user who emerged after the UST de-peg and crash wiped out $40 billion in market value from the crypto ecosystem, has identified the following wallets as Terraform Labs wallets or shadow wallets controlled by Do Kwon: 

TFL Dawn (11.28 million LUNA): https://finder.terra.money/mainnet/address/terra1uza3c9hpnp50np7t8ph5s5vqc0alggvv57q7zu

TFL shadow wallet (2.01 million LUNA): https://finder.terra.money/mainnet/account/terra13n0lynp9s8ks8gm3nzcgakg0dl8athnu8xscde

TFL MM (0.72 million LUNA): https://finder.terra.money/mainnet/address/terra1x04xgtwlw72gtfzrq7nfwmr6eexla8ecljw28z

Do Kwon shadow wallet #1 (19.69 million LUNA): https://finder.terra.money/mainnet/address/terra1wqwfwh797tf77e2xpvy9xx082pwpxxlm9x4xws

Do Kwon shadow wallet #2 (9.11 million LUNA): https://finder.terra.money/mainnet/address/terra1e82da9n6jz4t42eh0wn5hrt6hdmf7jyq8sufkp

Total: 42.81 million LUNA tokens

All these wallets currently hold LUNA tokens that are either vested or airdropped, unlocked at genesis. Therefore, despite assuring the community that Terraform Labs wallets will be removed from the whitelist, Do Kwon managed to keep it and receive vested and unlocked LUNA in these addresses. 

Terraform Labs wallets and Do Kwon's shadow wallets were not removed from the whitelist

Terraform Labs wallets and Do Kwon's shadow wallets were not removed from the whitelist

FatMan told the community that these wallets are just the verified ones, and that there are many others. He revealed that Do Kwon used his shadow wallet to approve his proposal and manipulate Terra's governance through Terraform Labs is not supposed to vote. 

The whistleblower acknowledged the importance of facts and symmetric information for investors in the crypto ecosystem and warned LUNA holders, asking them to exercise caution. 

Do Kwon manipulates Terra holders that LUNA 2.0 is "community-owned"

Kwon has been accused of manipulating the new Terra chain's governance on several occasions. Recently verified validators, part of the "war room" instituted after the colossal LUNA-UST crash, confirmed Do Kwon and Terraform Labs had a hands-off approach to the rebirth of Terra and recovering the lost worth of validators and investors. 

FatMan considers Kwon's affirmation that the new Terra LUNA 2.0 chain is community-owned an outright lie, as the new facts shed light on the CEO's control of the project. 

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Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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