Community accused Terra of cheating in LUNA 2.0 distribution

According to user FatMan, the company participated in the airdrop despite promising not to do so

07.06.2022 - 10:50

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2 min

What’s new? Terraform Labs (TFL) CEO Do Kwon is accused of cheating in the distribution of LUNA 2.0 tokens. A Twitter user under the nickname FatMan claimed that TFL has 42 million tokens worth about $200 million in shadow wallets. In this, he referred to Terra’s May 25 announcement that the organization’s wallets would be removed from airdrops at the launch of the new blockchain. According to the network’s representatives, this decision was meant to make the new blockchain “a fully community-owned chain.”

Do Kwon has stated numerous times that TFL has zero new LUNA tokens, making Terra 2 'community owned'. This is an outright lie that nobody seems to be talking about. In fact, TFL owns 42M LUNA, worth over $200m, and they're lying through their teeth. (1/6) pic.twitter.com/D1HIWpAWHG— FatMan (@FatManTerra) June 6, 2022

More details about the charges. A Twitter user found three wallets linked to TFL and two linked to Do Kwon. He added that there are probably other hidden addresses. FatMan also accused Do Kwon of planning to use these coins to manipulate the community.

FatMan had previously reported that TFL had started work on a new algorithmic stablecoin on the Terra 2.0 blockchain.

Cryptocurrency exchange Binance conducts an internal investigation into TFL’s activities. The investigation was initiated after FatMan accused Do Kwon and the Terra team of manipulating LUNA tokenomics and insider trading.

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