Terra CEO and co-founder Do Kwon, denied rumors that he withdrew liquidity from LUNA and UST assets.
On June 11, numerous unconfirmed reports surfaced alleging that Kwon was involved in draining liquidity from LUNA and UST to buy the Tether (USDT) staplecoin.
Rumors of Kwon cashing out LUNA and UST reserves emerged after a Twitter user nicknamed FatManTerra shared alleged details about how Kwon, along with other Terra influencers, managed to drain funds by artificially maintaining liquidity in the ecosystem.
According to his hypothesis, Kwon withdrew $80 million each month for four years through the Abracadabra platform and the conversion of UST to MIM token. The total amount withdrawn over the total period was $2.7 billion.
For his part, Kwon said these rumors contradict claims that he still owns most of his LUNA assets.
Moreover, Kwon reiterated that his income over the past two years was only a cash salary from TerraForm Labs (TFL).
He also noted that “spreading lies” adds to the pain of all LUNA investors.
“I haven’t said much because I don’t want to seem like a victim, but I’ve lost most of what I had. I’ve said it several times, but I don’t really care much about the money,” he concluded.