Terra Crash Orchestrated By Crypto Hotshots, Whistle-Blower Alleges

A Terra whistle-blower has alleged that the epic crash that wiped off billions of dollars was the result of a massive fraud rather than a flawed algorithm. Terraform Labs CEO and founder Do Kwon and other big names in the industry have come under a shadow of doubt.

The stinging remarks on Twitter comes as the Terra community awaits the official launch of the new blockchain that ditches the algorithmic stablecoin TerraUSD (UST) and creates LUNA 2.0.

A Twitter user who goes by the name FatManTerra dropped several nukes that seemingly supported what many Terra investors suspected all along, claiming that based on allegations by whistle-blowers, the Terra LUNA-UST meteoric crash was orchestrated by several hotshots and entities in the cryptocurrency industry. The Terra community member who has been active in governance groups since the crash sought to implicate Do Kwon, Jump Crypto President Kanav Kariya, and FTX CEO Samuel Bankman-Fried via a Twitter thread.

Venture capital firm Jump Crypto is alleged to have offered Terra a "bail-out" deal in May 2021, with one of the terms involving millions of LUNA tokens in monthly repayment. The Twitter user alleged that Jump manipulated retail users and caused them to lose "billion in UST and LUNA.

"I know who controls you behind the scenes (B); I know about your Slack group having a 14 day retention window," FatManTerra said, this time pointing at Jump president Kanav Kariya. "I know about the 30% Serum handshake deal with Jump and what you did to retail investors after," the Twitter user said, tagging FTX CEO Samuel Bankman-Fried.

"I know about the bailout from Jump in May 2021 and I know exactly how much you owe them every month in LUNA (hint: how many zeroes in a million?)," The Twitter user claimed, tagging Kwon's Twitter account. Additionally, he accused Kwon and Terraform Labs of strong-arming developers and builders to accept a lower stake than their ask and publicly support it.

"Do Kwon knows the builders are important, but it looks like he doesn’t want to relinquish control. Three major protocols were strong-armed into supporting the new fork and many of us don’t like it," the insider said in another tweet. "Build teams negotiated a 25% stake in Terra 2 but were forced to accept a 10% compromise and were cut out if they didn’t support it publicly."

Unfortunately, FatManTerra has yet to furnish evidence supporting his allegations.

Do Kwon and the others have not responded to the charges. Do Kwon and Samuel Bankman-Fried blocked FatManTerra instead.

LUNA was trading down 22.42% at $0.0001327 with a 24-hour volume of $250,538,005 as of 12:49 a.m. ET on Friday, based on data from CoinMarketCap.