Terra CEO Do Kwon has been in hot water ever since the collapse of the network last month. After the UST lost its peg and the price of LUNA (Now LUNC) crashed below zero, there had been calls for investigations into the cause of the crash seeing that thousands of investors had lost billions of dollars. The most recent allegation against the CEO is that of money laundering, which may see Kwon face charges in the United States if there’s any credibility to it.
Terra Employees Speak Out
After the crash had come what has been the most gut-wrenching weeks in the crypto space. Numerous allegations had arisen basically accusing those at the top of the Terra organization of having a hand in the crash. Previously, there had been some data that showed that the early investors in LUNA may have sold off their holdings right before the crash, suggesting that they might have had some knowledge that it was coming.
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However, none of these accusations had been directly tied to the CEO until now. Employees of TerraForm Labs (TFL) have spoken out regarding things that happened behind the scenes prior to the crash. They allege that the CEO had moved $80 million each month into various anonymous wallets and foreign bank accounts. This has now raised alarms regarding if Kwon was involved in money laundering. This also goes against the claim from TFL that it did not hold any coins when it is alleged that it holds about 42 million LUNA.
A developer from Anchor had told JTBC that they had previously asked the interest rate to be lower but Do Kwon had refused. Instead of the suggested 3.6% interest rate, Kwon had raised the interest rate to 20% before the crash.
LUNA 2.0 price falls below $3 | Source: LUNABUSD on TradingView.com
Do Kwon may see himself facing charges in the United States if there is any truth to these allegations. Additionally, the SEC is already investing the CEO on claims that the TFL had violated the Securities Act by allowing the purchase of stocks in the United States using Terra.
How LUNA 2.0 Is Doing
The launch of the LUNA 2.0 had seen investors who had lost money due to the crash getting airdropped new tokens. The price of these tokens had quickly risen after the airdrop. However, as expected, the following crash was swift and brutal.
After touching as high as $18 on launch day, the digital asset has now lost more than 80% of its all-time high value. It is trending around $3 at the time of this writing with no indication of any recovery in sight.
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Luna Classic (LUNC) continues to trend below zero but trading activities have not let up. For the last 24 hours, the digital asset has recorded one of the highest trading volumes, coming in third place behind the volumes of market leaders such as Bitcoin and Ethereum.
Do Kwon has also stated that the TFL will continue to support and build on the Terra 2.0 network. However, only time will tell how this will play out in the long run.
Featured image from Coingape, chart from TradingView.com
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