Do Kwon and the Terra ecosystem have not finished spilling ink on the implosion of the project and the nefarious role of the founder of TerraForm Labs, which affected the entire cryptocurrency industry.
According to new information that has recently surfaced, the Terra Luna scandal is expanding to new horizons after additional revelations. Prosecuted or under investigation in several countries around the world, Do Kwon continues to be talked about. Probably identified as the number one enemy of the crypto sphere, he adds a new scandal to his collection, which continues to grow in recent months.
While we were discussing Anonymous’ threats against Do Kwon yesterday who promised to release all of Do Kwon’s dirty laundry, we finally didn’t have to wait for the hackers’ results for new distressing revelations.
Price manipulation and money laundering for Do Kwon?
According to some investigations, 3.6 billion dollars in UST and USDT would have been used by Do Kwon and TerraForm Labs for price manipulation and money laundering. At present, the authorities are continuing their investigations and are said to be confirming these allegations with the main exchanges Binance, Coinbase or Kucoin in order to obtain rapid confirmation.
Previously, while Do Kwon had displayed in public certain possessions of the wallets of the Terra Luna teams and in particular of the Luna Foundation Guard, others Suspicious sums and transactions were observed through on-chain data.
The total funds, of unknown origin and use concerned by the facts, would be more than 3.6 billion in UST stablecoin from the Terra ecosystem and in USDT from Tether.
According to pre-established reports, this money would have had two major uses: money laundering and market price manipulation, both on Luna classic (LUC), formerly Luna, and on certain DeFi exchanges controlled by TerraForm Labs teams.
On-chain data under observation
Since the fall of the Terra ecosystem, the companies CoinDesk Corea and Uppsala Security have continued their investigations, regularly disclosing information that is at the very least crisp. They observe the data on the Blockchain without restraint to understand the flaws behind the collapse of the project.
A wallet is particularly monitored, since it is identified as the main culprit behind the crash: 0x8d47f08ebc5554504742f547eb721a43d4947d0a. The analysis of the transactions of this portfolio is also indicative of multiple suspicious transactions.
The TerraForm Labs and Luna Foundation Guard teams, for example, sent more than 7 billion in stablecoins (USDT, USDC and UST) to two wallets on the Binance exchange. The latter would also be possessions of the Luna Foundation Guard, according to the first confirmations.
Uppsala Security and CoinDesk Korea performed additional on-chain data analysis to monitor an unidentified cash flow worth $3.6 billion.
However, after the first signs of deflation from the UST and a few days before the historic fall of the Luna token, more than 300 million USDT were allegedly deposited on an LFG wallet, then transferred to another wallet, of which the owner has not been identified at this time.
In any case, even if these analyzes do not yet reveal the full extent of the scandals linked to the founder Do Kwon, they give us a clear insight into what happened internally within the teams linked to the UST tokens and Moon with a multitude of suspicious or even illicit transactions within the portfolios held by the companies.
The transactions involved include several portfolios and were carried out from the end of 2021, until the collapse of the entire ecosystem. Before the final and fatal crisis to the ecosystem, the TerraForm Labs teams even deposited billions of dollars in USDT on an exchange. Funds that would probably have been the source of price manipulation or money laundering.
No doubt we will soon be led to discover new revelations related to the fall of the Terra ecosystem and its founder, Do Kwon, this very contrasting character in the crypto sphere and who has been multiplying scandals lately. The rest of the soap opera in the next episode…
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New Episode for Soap of the Year Do Kwon and Terra Luna: Laundering and Price Manipulation – BeinCrypto
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