On-Chain Data Suggests Do Kwon Still Cashing Out Terra Holdings

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October 23, 2023

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On-chain data from the Terra blockchain suggests that Terra founder Do Kwon, who is wanted by South Korean police, is still cashing out from his “shadow wallets.”

The claim that Do Kwon is still cashing out was shared on Twitter by the pseudonymous user FatMan, a popular Twitter user who in the past has taken a leading role in exposing questionable practices around Terra.

According to FatMan, “seven figures” in the LUNA token has already been sent from wallets controlled by Do Kwon and to the crypto exchange Binance, with “round two” of selling already underway.

“The relentless shilling on Twitter is happening for a reason. He’s already deep into round two,” FatMan wrote, hinting that Do Kwon is simply using new investors in his token as a form of exit liquidity for himself.

The claim by FatMan was further backed up with details from Jaewoo Cho, a blockchain expert and assistant professor at South Korea’s Hansung University, who made it clear that Do Kwon has continued this practice since September 13 this year.

In the last month alone, seven figures in LUNA has been forwarded from Do Kwon's shadow wallets to Binance. The relentless shilling on Twitter is happening for a reason. He's already deep into round two. https://t.co/1Hit7dsSvU

— FatMan (@FatManTerra) October 10, 2022

The Terra blockchain and surrounding ecosystem collapsed spectacularly in May of this year when the price of Terra’s algorithmic stablecoin UST in a matter of just a week went from $1 to $0.1. At the same time, the price of Terra’s native token, LUNA, also collapsed, falling from $65 to $0.005 in just four days.

In the past, FatMan has publicly implored Do Kwon to “come forward and face his arrest warrants and court cases.”

The price of LUNA (also known as LUNA 2.0) fell on Monday night, although it is unclear if the fall is related to the claims that Do Kwon is selling. As of press time on Tuesday, LUNA was down by just over 5% over the past 24 hours, trading at $2.42.