- 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
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.
In the investing landscape, it's important that retail receives symmetric information, so understand the facts and make of this what you will. Exercise caution and know what you are buying. These people have no moral fibre. They will lie for money at every possible turn. (4/6)
— FatMan (@FatManTerra) June 6, 2022
Best performing cryptocurrencies of the week
Cryptocurrency analysts at FXStreet have identified the best-performing cryptocurrencies of the week. WAVES, OGN and HNT, are the three assets that made it to the list. For more information on their price-performance and trends, watch this video:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
TRON gains 10% in 2024, supply of stablecoins reaches over $50 billion in Q1
TRON, a blockchain-based digital platform, has seen positive growth in the first quarter of 2024, as seen in a Messari report. TRON noted gains across several metrics like market capitalization, revenue and total value locked.
XRP hovers near $0.50 as Ripple CTO addresses concerns related to stablecoin launch
XRP is hovering near $0.53 on Friday, spending nearly all week below $0.55. Ripple CTO David Schwartz addressed concerns on stablecoin and XRP utility on Thursday.
Terraform Labs set to restrict access for users in the US after recent ruling in SEC lawsuit
Blockchain company Terraform Labs said Thursday that it will restrict access to some of its products and services for US-based users as it expects to receive a court order soon in light of its legal battle against the US Securities and Exchange Commission (SEC).
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.