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Dogecoin Creator Reacts To Do Kwon Allegedly Cashing Out $80M Monthly Before LUNA Crash

Dogecoin (CRYPTO: DOGE) co-creator Billy Markus and other prominent crypto industry watchers were unsurprised at the latest allegations against Terra’s (CRYPTO: LUNA) parent Terraform Labs

Benzinga · 06/10/2022 07:56

Dogecoin (CRYPTO: DOGE) co-creator Billy Markus and other prominent crypto industry watchers were unsurprised at the latest allegations against Terra’s (CRYPTO: LUNA) parent Terraform Labs (TFL) and founder Do Kwon.

What Happened: On Thursday, Watcher News reported that TFL employees have confirmed to the U.S. Securities and Exchange Commission that $80 million of company funds were sent to “secret wallets” every month before the LUNA and TerraUSD (CRYPTO: UST) collapse.

Markus tweeted a meme that read “pretends to be shocked,” while others compared the Terra founder’s alleged money laundering activities to Bernie Madoff’s Ponzi scheme.

“Just to say 12 x $80m = $1bil. That level of selling and the leverage increase resulting, may have materially contributed to the collapse depending on market cap over time,” wrote Adam Back, Blockstream founder and inventor of Bitcoin’s (CRYPTO: BTC) Proof-of-Work mining algorithm, on Twitter.

The Watcher report cites South Korean publications Naver and JBTC which revealed that the SEC had acquired internal statements showing the monthly distribution of $80 million funds into “dozens of cryptocurrency wallets” every month.

A key internal informant said that Kwon had not received any official payment from TFL on paper.

See Also: Terra (LUNA) Founder Do Kwon Faces $78M Fine For Tax Evasion

On Thursday, the court of appeals rejected Terra’s dispute of a subpoena from the SEC. The regulator is investigating whether Terra used Mirror Protocol (CRYPTO: MIR) to sell unregistered securities.

Price Action: According to data from Benzinga Pro, LUNA was trading at $3.03, up 2.25% over the last 24 hours.

Photo courtesy: Terra