Dogecoin DOGE/USD co-creator Billy Markus and other prominent crypto industry watchers were unsurprised at the latest allegations against Terra’s LUNA/USD 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 UST/USD collapse.
— Shibetoshi Nakamoto (@BillyM2k) June 9, 2022
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.
— Wall Street Memes (@wallstmemes) June 9, 2022
“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 BTC/USD 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
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