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Members of the Terra community have hypothesized that well-known personalities such as FTX CEO Samuel Bankman-Fried and Jump Crypto CEO Kanav Kariya are responsible for the monstrous collapse and de-binding of TerraUSD (UST).
Their suspicions are based on details of an insider deal that broke the UST stablecoin peg. Leading the investigation by UST owners was user FatMan, one of the most active members of the LUNA community.
Over the past 48 hours, I have been contacted by several people. They would like to and will remain anonymous. I’ve learned very disturbing things, and there’s a lot more to come; this is just the beginning. But I can already tell you something.
As FatMan learned, Terra co-founder Do Kwon paid Jump Capital a monthly fixed commission in LUNA tokens to pay off the debt.
For the past nine years, Jump Crypto has been considered a leading investor in cryptocurrency and blockchain-based projects. A venture capital firm stepped in to save Wormhole after one of the biggest DeFi hacks in 2022. After the $322 million hack, the firm backed Wormhole by investing 120,000 Ethereum in the firm.
However, FatMan believes that Jump Crypto’s involvement was not limited to the rescue of Wormhole, and an insider deal was struck between FTX founder and CEO Samuel Bankman-Freedom and Kanav Kariya.
As he was told by an informant from Terraform Labs, the purchase by Jump Capital of part of the LUNA tokens in the amount of $ 1 billion in February 2022 took place with the participation of Three Arrows Capital and Defiance Capital. The token sale was conducted by the Luna Foundation Guard (LFG).
After the allocation of $750 million worth of bitcoins and another 30,000 BTC from LFG reserves to restore the UST binding under a legal agreement without any votes, the remainder was transferred to Terraform Labs.
In this regard, the insider raised the question of how decentralized LFG is. It turns out that LFG consultants do not have the right to vote on decisions made by Terraform Labs, since the firm is the sole owner of the LFG wallet.
A fully verified source close to Luna Foundation Guard: “The guys on the board voted twice during the crisis – for $750 million and 30,000 BTC. Both decisions have been announced. The remaining BTC were sent to the TFL under a bilateral agreement without a vote.”
Note that Terraform Labs is the sole owner of the Luna Foundation Guard wallet. LFG’s advisors have no legal effect. There are only three official members of the company, two of them are employees of TFL, including Do Kwon himself. We’ll learn more soon, both from this source and directly from the LFG.
My personal thoughts: Why didn’t Do ask his advisors to hold another vote before pulling the rest of the bitcoins? Why is it so opaque? Do you have an explanation?
FatMan promised to further expose Do Kwon’s actions, realizing that it is unlikely that this will bring any compensation other than moral compensation.
#FTX #CEO #BankmanFried #suspected #collapse #LUNA #UST #stablecoin