This week on Crypto Twitter: Terra conspiracy theories swirl as all eyes turn to Do Kwon

Illustration by Mitchell Preffer for Decrypt

Crypto fans, fear not. The worst is over. After seven long weeks decreases, prices finally stopped falling. Although how long this lasts, no one can guess.

On Crypto Twitter this week, Terra CEO Do Kwon stood in the dock as conspiracy theories were thrown at him and the entities he acted under during Terra’s Historic Collapse. Terraform Labs, the Luna Foundation Guard, and ultimately Kwon himself are accused of fraud, unscrupulous profiteering, and tax evasion.

To get an idea of ​​the extent of the damage, consider Binance’s once majestic investment in LUNA.

Today, the exchange’s total holdings are worth just under $3,000.

This week, reports made the rounds that Kwon may have used his nonprofit, the LUNA Foundation Guard, to bail out the whales by transferring huge amounts of Bitcoin to Binance and Gemini, and using it to buy USTs from them. for a value close to face value ($1) at a time when the UST was worth around $0.60 in secondary markets.

On Tuesday, Twitter user FatMan, who claims to be affiliated with Terra Research Forumaccused Kwon of skimming the peak of LUNA’s success by cashing in hundreds of millions of dollars”directly out of LUNA’s market capitalization” over the past few years “to pay salaries and operating expenses of Terra employees.”

Later that week, FatMan asked Kwon if reporting in Korea hurry are true: Is Terra currently being harassed by South Korean tax authorities for $78 million? Kwon cleared the air.

Kwon also said South Korean authorities “creatively tasked millions of crypto companies” to recover from a pandemic-induced recession, and Terra complied to the last penny.

The Terra creator went on to answer some pressing questions from the community, including why he doesn’t like take the advice of many, including the CEO of Binance Changpeng Zhao– and burn most of LUNA’s post-death spiral supply of 6.5 trillion basically worthless tokens.

Many have accused Kwon of an elaborate rugpull after being silent for two days at the height of Terra’s demise, but his slightly improved responsiveness and transparency since then appear to have won FatMan back on Saturday.

Still, the heat is on Kwon for a while. Doo Wan Nam, chief operating officer of blockchain research and investment firm StableNode, tweeted that South Korean investors in Terra are now filing criminal and civil lawsuits against Kwon, alleging fraud.

The aftermath of Terra’s collapse also had wider repercussions for the entire crypto industry. Now people want to know if other stablecoins, like Tether, are actually backed up to the last dollar. After all, it was disputed several times before.

FTX CEO Sam Bankman-Fried believes that audits and monitoring are key to protecting consumers going forward.

Somewhere else

Outside of Terra’s industry-wide autopsy, a few other notable things happened on Crypto Twitter this week. For starters, Salvadoran dictator Nayib Bukele wants you to know that his government is still bullish on Bitcoin. What Bukele forgets to mention is that he’s currently at $34 million. in the hole of his bitcoin investment. Smile through the pain, Bukele!

On Friday, someone tried to discredit NFT Women’s World alleging that the PFP portraits in the collection are inspired by images of murdered women. The accuser’s “evidence” is dubious and essentially rests on an alleged and totally unproven romance between artist/WoW project founder Yam Karkai and sex cult leader Keith Raniere.

Why would that person drag World of Women like that? An account named CryptoRock gave a plausible explanation.

Finally, those interested in knowing the net worth of Ethereum creator Vitalik Buterin now have a bit more clarity. He is not (any longer) a billionaire.

Want to be a crypto expert? Get the best of Decrypt straight to your inbox.

Get the biggest crypto news + weekly digests and more!

About Sharon Joseph

Check Also

Investing in Science Blockchain (SCI2) – Everything You Need to Know

The Science Blockchain (SCI2) functions as a next-generation incubator. The network seeks to empower entrepreneurs …