Industry players are not shocked by claims that Do Kwon laundered Terra funds.
Do Kwon’s reputation may be on its way to the gutters, but very few people would have expected other industry developers and players to not support him, even for a while. However, that’s not what’s happening. Do Kwon has managed to alienate his fellow developers to a point where all allegations against him are no longer shocking.
A case in point is the latest allegations against him and linking him to a TFL money laundering scheme.
As reported by the TheCryptoBasic, employees from TFL were being interviewed by the US SEC, and they had confirmed Do Kwon’s embezzlement of Terra’s funds, Do Kwon transferred funds to the tune of $80 million a month from company funds to secret crypto wallets and foreign bank accounts. But people like Dogecoin creator Billy Markus weren’t surprised at all.
Billy tweeted a somewhat sarcastic GIF pretending to be shocked by the allegations.
— Shibetoshi Nakamoto (@BillyM2k) June 9, 2022
The reason why doge founder is not shocked is that he firmly believes, these days “Every crypto Project is Made to Enrich Creators At Expense of Community”
Recently doge founder criticized Luna 2.0, saying: “luna 2.0 will show the world just how truly dumb crypto gamblers really are.”
Do Kwon Vs., Bernie Madoff
Other users took their chance to draw a comparison between Do Kwon and Bernie Madoff. In 2009, Madoff was responsible for a $60 billion loss of investors’ money. He ended up with a 150-year prison sentence. In 2022, Do Kwon lost the same amount of investors’ funds when Luna and UST crashed in May.
According to the employees interviewed by the SEC, Do Kwon was transferring $80 million of Terra funds every month before Luna collapsed. Blockstream’s Adam Back thinks these actions contributed significantly to the collapse of the Terra ecosystem.
He said,
“Just to say 12 x $80m = $1bil. That level of selling and the leverage increase resulting may have materially contributed to the collapse depending on the market cap over time.”
SEC On Do Kwon’s Neck
Do Kwon and TFL are currently being investigated by the SEC. An appeal they lodged against an earlier SEC subpoena was squashed by the court of appeal a few days ago. That means that Kwon is still in legal trouble in the US. The case is about whether he used the Mirror Protocol to pass off and sell UST as unregistered security in the US. Kwon maintains that the SEC has no jurisdiction to charge him.
However, things are different where he is in South Korea. The SK taxman is demanding a $78 million settlement for tax evasion. The SK government is also investigating Kwon and TFL about the Terra collapse and allegations of embezzling the reserve funds meant for maintaining the UST peg.
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Source: https://thecryptobasic.com/2022/06/11/dogecoin-founder-says-he-is-not-surprised-by-allegations-about-terra-founder-cashing-out-80m/?utm_source=rss&utm_medium=rss&utm_campaign=dogecoin-founder-says-he-is-not-surprised-by-allegations-about-terra-founder-cashing-out-80m