Luna Do Kwon founder faces fraud charges

In this time, Do Kwon faces fraud charges that emerged from a source known through Twitter account titled FatManTerra in a series of tweets posted on May 25. On his Twitter profile, FatManTerra describes himself as “FatMan from the Terra Research Forum”, a leaked source news familiar in the cryptocurrency industry.

Accusations

Specifically, FatManTerra’s tweets allege that “someone”, who has access to multiple money supply contracts and liquidity providers (LPs), has dispersed Mirror Protocol (MIR) tokens ) on a large number of wallets so that the protocol looks more decentralized. According to FatManTerra, Mirror Protocol is just a “farce protocol” created by Terraform Labs with the aim of benefiting Do Kwon and venture capitalists (VCs), “while manipulating governance and twisting , making retail difficult.

Terraform Labs Crypto Ecosystem CEO Do Kwon Bloomberg

FatManTerra used Etherscan to discover a wallet that had implemented Mirror Protocol productivity-enhancing smart contracts, and then traced transfers from this wallet. According to data from CoinMarketCap, which is also one of the top MIR wallets. In addition, FatManTerra also lists additional facts, such as that the wallet created a smart contract that FatManTerra argues is part of Mirror Protocol’s Terra and LP wormhole infrastructure.

Depth of fraud allegations

FatManTerra discovered several wallets involved in connecting tokens via the aforementioned wormhole, including transferring assets from Ethereum to Terra, purchasing $750 million worth of TerraUSD (UST) tranches, and subsequently scatter them across multiple wallets in a similar way.

One of the wallets that FatManTerra is paying special attention to is the tokens being moved to the address of a decentralized autonomous organization (DAO), where Do Kwon is said to be the official advisor. Finally, through the “maze” of wallets, FatManTerra argued that the MIR assets were transferred to KuCoin and Binance, where they were then sold on the open market. FatManTerra recommends that each person do their own research and draw their own conclusions. A DAO is a rule-based organization coded as a transparent computer program, controlled by its members and unaffected by the central government.

Allegations of tax evasion

On May 21, FatManTerra alleges Do Kwon evade taxes more than 78 million USD, this is the tax money business not yet paid. Do Kwon has directly asserted that he and his crypto companies are not obligated to pay unpaid taxes in South Korea. Currently, the whereabouts of the owner of Terraform, one of the focus of the police investigation into tax evasion, is still unclear because Do Kwon was not found at the company’s office in Singapore, or at his residence. older brother.