Source Claims That Do Kwon Withdrew $2.7 Billion Few Months Before The Crash
Once again, some revelations are being made towards the Do Kwon saga which has hurt a lot of people. The LUNA/UST crash saga has placed Do Kwon On a giant spotlight. The authorities are all over his business and this means that they will make sure that nowhere is left un turned. Do Kwon has been perceived to be scandalous by a lot of people on Twitter, as they are always quick to call him up on Twitter. Being egocentric he usually retaliates with some harsh words. Right now they seem to be having a great time seeing that all they predicted about Do Kwon and his project is coming to pass.
A Twitter user called FatmanTerra has dedicated his time in trying to expose Do Kwon and the crash. His latest exposure is a claim showing and explaining how Do Kwon was able to withdraw $2.7 Billion USDT and USDC before the crash. According to the source, Do Kwon was able lure investors into investing or rather luring liquidity into his project by increasing APY. I won’t lie, Do Kwon’s 20% APY for UST was a very enticing opportunity that felt like it was worth investing in.
This introduced a lot of people into buying UST because it seemed like a good go, you buy a StableCoin, stake it and earn 20% APR for a supposedly low risk investment. This created a demand that led to increase in liquidity, this increase in liquidity enabled Do Kwon cash out $2.7 Billion without creating an alarming depeg of UST.
This is the power of blockchain, its transparent and shows details of activities done on the block. According to this Twitter user Do Kwon dumped $2.7 Billion UST and converted them to USDC AND USDT.
More sources show that this money was sent to different exchanges in both USDC and USDT.
This leaves me with a question, why dump $2.7 Billion StableCoin if he believed in the mechanism and stability of UST?
This claims have not been verified yet by SEC or by Do Kwon, but these are claims from a Twitter user.