Terraform Labs co-founder Do Kwon has not admitted to the $2.7 billion TerraClassicUSD (USTC) cryptocurrency charge.
On June 11, a Terra Research forum user nicknamed FatMan claimed that Kwon had cashed out $2.7 billion in digital assets over a period of months through the Abracadabra Degenbox credit protocol.
The businessman allegedly used the pool to exchange USTC for Magic Internet Money (MIM). Do then converted MIM into USD Coin Stablecoin (USDC) and Tether (USDT) and transferred the coins to cryptocurrencies KuCoin, Binance and Huobi.
Kwon called the statement about cashing in stabelcoins “categorically incorrect” and drew attention to the fact that his wallet still holds the bulk of Terra Classic (LUNC) transferred during the airdrop in 2022.
For the past two years, my income has only included my salary in cash paid to Terraform Labs. I did not receive most of the tokens owed to me because a) I did not need them and b) I did not want to draw criticism for owning too many coins,” Do explained.
FatMan speculated that Kwon’s USTC conversion deals may have triggered a plunge in the value of the Stablecoins due to reduced liquidity. However, according to Do, the collapse in the TerraClassicUSD and Terra Classic markets was not to his advantage, because he lost the lion’s share of his savings because of the dump.