LUNA Whistleblower Says Terra Team May Not Refund Smallholders As Promised

Luna Whistleblower Says Do Kwon And Terra Team Are Responsible For Market Crash And May Not Issue Refunds As Promised.

Terra is facing yet another backlash if a recent expose is anything to go by. Apparently, a whistleblower is exposing Terra and Do Kwon for what could be seen as fraud and a blatant string of lies and incompetence that may have caused investors financial pains going into billions.

One crypto investor and Terra fan claim to have been contacted by several people volunteering information about what has been happening at Terra of late. Through his Twitter handle (FatMan), the pundit posted a thread in a damning string of accusations that he claims were leveled against Terra by the whistleblowers.

In the past 48 hours I have been contacted by several whistleblowers. These people would like to and will stay anonymous. I have learned some deeply troubling things and there is a lot more to come – this is just the very beginning. Here is some of what I can tell you.

— FatMan (@FatManTerra) May 23, 2022

FatMan further quoted Terra Founder Do Kwon, JUMP, Kanav Kariya and FTX CEO saying:

“@stablekwon I know about the bailout from Jump in May 2021 and I know exactly how much you owe them every month in LUNA.

“@jump_ I know exactly what you did to manipulate retail into losing billions on UST, especially LUNA.

“@KanavKariya I know who controls you behind the scenes; I know about your Slack group having a 14-day retention window.

“@SBF_FTX I know about the 30% Serum handshake deal with Jump and what you did to retail investors after.”

Conspiracy To Fleece Investors

FatMan went on to claim that Do Kwon had a deal with Jump, which is a group of blockchain builders, to pay them monthly in exchange for them manipulating the UST and Luna markets.

This has led to retail investors losing billions. FatMan called out the president of Jump, Kanav Kariya, for being a puppet and operating a secret slack group. Next, FatMan set sights on the CEO of crypto exchange FTX, accusing him of facilitating a 30% handshake deal with Serum, which is a DEX platform, involving Jump to fleece retail investors.

These accusations come while the community is still digesting claims that Terraform Labs and Do Kwon may have embezzled the funds set aside as reserves meant to keep UST and Luna prices stable.

Kwon claims to have spent the BTC reserves for that purpose, although no notable effects happened. UST and Luna still crashed. It’s reported that South Korean authorities are investigating Kwon and Terra Foundation Guard.

This has sent shivers across the Terra community because if the Terraform Labs and TFG’s assets are frozen by the authorities, there will be no funding for Terra 2.0 or the promised refunds for affected Luna holders.

According to FatMan, the move of Korean police is the confirmation of what whistleblowers suspected, as all LFG funds were controlled by Terraform Labs, furthermore small holders may not get any refunds if Terra funds are blocked by law enforcement agencies.

“If LFG assets are frozen by the police too soon, the small holder refund that they guaranteed may not take place. Let’s hope bureaucracy drags its feet on this one, at least for the time being. I have been contemplating several matters (albeit sleep-deprived) – more to come soon.”

If LFG assets are frozen by the police too soon, the small holder refund that they guaranteed may not take place. Let’s hope bureaucracy drags its feet on this one, at least for the time being. I have been contemplating several matters (albeit sleep-deprived) – more to come soon.

— FatMan (@FatManTerra) May 23, 2022

Do Kwon Is Clinging To Power

There have also been claims that Do Kwon has been strong-arming the major players in the Terra blockchain into supporting his proposals to rebirth the chain as Terra 2.0 instead of burning tokens. It has also been reported that he controls over 90% of Terraform Labs. Some see this as his way of clinging to power and bulldozing his own decisions through the community voting blocks.

Fatman added, “Do Kwon knows the builders are important, but it looks like he doesn’t want to relinquish control. Three major protocols were strong-armed into supporting the new fork and many of us don’t like it. Build teams negotiated a 25% stake in Terra 2 but were forced to accept a 10% compromise and were cut out if they didn’t support it publicly.”

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