Do Kwon, president of Terraform Labs, denied the information that allegedly pulled in billions of dollars before the Terra ecosystem collapsed. He called such claims “categorically false”.

Earlier, analyst FatMan said that Degenbox’s $UST-$MIM strategy on the Abracadabra platform allowed Kwon to withdraw more than 2.7 billion UST from Terra within a few months.

Some of you thought $80 million a month was bad. This is nothing. Here’s how Do Kwon cashed out $2.7 billion ($33 x $80 million!) in just a few months thanks to Degenbox: the perfect mechanism to withdraw liquidity from the LUNA & UST system to stablecoins like USDT. (1/13)

— FatMan (@FatManTerra) 11 June 2022

“Some of you thought $80 million a month was bad. This is bullshit. This is how Do Kwon cashed in $2.7 billion ($33 x $80 million!) in a few months thanks to Degenbox: the perfect mechanism to drain liquidity from the LUNA and UST system into stablecoins like USDT,” wrote Do Kwon.

FatMan explained that the strategy in question yielded high returns and was promoted by “Terra influencers”. According to him, this made it possible to create the necessary liquidity for the withdrawal of funds – thanks to high demand, it was possible to replace the UST with MIM without breaking the binding of the first.

Here’s the total amount MIM Do Kwon was able to cash out from the MIM/UST pool – without even moving the latch! $2,719,132,772.01 to do with whatever he wants. No need to abandon LUNA or sell UST on exchanges – it collected liquidity from all of you. (7/13) pic.twitter.com/vRVve3WRsj

— FatMan (@FatManTerra) 11 June 2022

The analyst noted that MIM was eventually exchanged for USDT and USDC, and then sent to central exchange addresses, including Binance, KuCoin, and Huobi.

FatMan urged Terraform Labs to disclose the purpose of these transactions, disclose the sources of funding for the Luna Foundation Guard reserve, and release data on the company’s transactions to stabilize the UST price.

In response, Do Kwon stated that his only income over the past two years has been a “nominal cash salary” at Terraform Labs. According to him, he delayed acquiring more “founder tokens” because he did not need them.

2/ There seem to be two conflicting claims:

1. Do’s wallets have been frozen and he still has most of his luna via airdrop
2. Trashed all his coins to make billions

Ideally, a strip should be chosen

— Do Kwon (@stablekwon) 12 June 2022

In May 2022, FatMan claimed that Kwon and its venture capitalists had manipulated the Mirror Protocol DeFi project and defrauded retail investors.

Recall that Bloomberg learned that the US Securities and Exchange Commission has launched an investigation into the algorithmic stablecoin UST.