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Do Kwon, the founder, and CEO of Terraform Labs, has faced multiple allegations of foul play regarding the collapse of the Terra (LUNC) cryptocurrency and TerraUSD (USTC) stablecoin. Allegations have ranged from siphoning $8 million monthly to withdrawing $2.7 billion from the Terra ecosystem via DegenBox.
Now the Terraform Labs CEO has been accused of vote-rigging by a Twitter whistleblower. According to the pseudonymous whistleblower FatMan, Do Kwon broke Terraform Labs rules by using one of his secret wallets to vote on the firm’s proposal for Terra Station.
FatMan’s made these claims via his Twitter account, saying:
“Caught. The ‘mystery’ wallet with a 20M LUNA airdrop that was voting on Do’s own proposal, delegating to North Star, insider trading ASTRO, etc. – it is officially confirmed that it belongs to Do Kwon himself.”
The tweet also includes a screenshot of a past Twitter thread where FatMan tried to find the true identity of the “mystery wallet” that voted “Yes” to Do Kwon’s proposal with 5% of the voting power and funded by 20 million LUNA tokens.
Do Kwon responded by saying he would draw the line at “doxxing wallets” and urging the whistleblower to “stay above the witchhunt”.
FatMan tried to inquire about the relationship between the wallet and Terraform Labs to which Do Kwon responded by saying that the wallet belonged to the “Token purchase agreement holder with TFL [Terraform Labs]”, and then declining to comment any further.
Caught. The 'mystery' wallet with a 20M LUNA airdrop that was voting on Do's own proposal, delegating to North Star, insider trading ASTRO, etc. – it is officially confirmed that it belongs to Do Kwon himself. (1/3) pic.twitter.com/QqfBnk6Oxe
— FatMan (@FatManTerra) June 12, 2022
This tweet is part of a three-tweet thread that outlines the allegations with links to the Columbus-5 proposal and Do Kwons alleged secret wallet.
FatMan went on to say that Do Kwon used the same secret wallet to send in a proposal titled “Columbus-5 Mainnet Upgrade Proposal and Recommendations” in the month of August 2021.
FatMan shared one of the proposals referred to as Col-5 Agora to provide further evidence that Do Kwon used the wallet to vote on specific proposals. In this particular proposal, the wallet was used to vote multiple times to ensure that the proposal was successful.
As FatMan pointed out, the wallet in question is Kwon’s second choice wallet for casting votes on proposals.
Col-5 Agora proposal submitted by Do: https://t.co/TwjAsLkwHG
Corresponding on-chain proposal authored by Do Kwon (submitted from the mystery wallet):https://t.co/gSnqU8NWeP This is Do Kwon's verified alternate wallet. Credits to @FitManTerra for the spot. (2/3)— FatMan (@FatManTerra) June 12, 2022
FatMan finished off the thread by pointing out that Terraform Labs claimed they wouldn’t vote on proposals or take advantage of inside information. The whistleblower also went on to claim that the company only wants to “extract more money out of the community”:
“They told you TFL doesn’t vote. They told you TFL didn’t get the drop. But you’ll notice that every tiny thing they do is to extract more money out of the ‘community’ through wordplay and manipulation. He doesn’t care about you. You are an instrument to him and always were.”
They told you TFL doesn't vote. They told you TFL didn't get the drop. But you'll notice that every tiny thing they do is to extract more money out of the 'community' through wordplay and manipulation. He doesn't care about you. You are an instrument to him and always were. (3/3)
— FatMan (@FatManTerra) June 12, 2022
Terraform Labs and its founder Do Kwon has come under increasing scrutiny since the LUNA/UST scandal. In May, the Luna 2.0 airdrop was unevenly distributed amongst original LUNA holders, as well as money laundering allegations and an investigation by authorities in South Korea.