Terra cofounder Do Kwon is the one who is pumping Bitcoin

[buwaytress]

^ Combined 1.5B losses doesn't sound as bad as how much the last big stablecoin lost in pure BTC reserves.

Definitely more hurt for Saylor and far, far less for Elon ... when considering how much Tesla/MicroStrategy stocks themselves lost in the same period MS lost over $4B (still can't believe this guy put so much in BTC), Tesla over $500B, in just 2 months! Too lazy to look up how much shares of own company each personally has.

They definitely got tears in multiple buckets, not just BTC.

[bbc.reporter]

@buwaytress. Agreed. I speculate that each of their company's' performance during the bear market, a coming economic crisis, Ukraine invasion and there is the risk of China's invasion of Taiwan might not be very good. There is also China's defense ministry. He has already warned that America and their allies should avoid the Taiwan Strait or there will be war.

I predict Saylor liquidation fud to begin if bitcoin dumps under $20k and cause more panic.

[buwaytress]

@buwaytress. Agreed. I speculate that each of their company's' performance during the bear market, a coming economic crisis, Ukraine invasion and there is the risk of China's invasion of Taiwan might not be very good. There is also China's defense ministry. He has already warned that America and their allies should avoid the Taiwan Strait or there will be war.

I predict Saylor liquidation fud to begin if bitcoin dumps under $20k and cause more panic.

Except that now he seems to have backtracked somewhat and said that the danger is really not as significant as -- think 3 days ago, I saw the full transcript on phone and he said a lot of things that didn't seem to add up

Takeaways: plenty of assets left to collateralise, margin call wouldn't happen below 21k, and he's leveraged 1.04, so would need 95% drop of purchase price (so that's $2000) to get in trouble.

But I don't know, was a rough interview and vague as hell.

[TheGreatPython]

<...>
Anyway he's just as guilty as Bernie Madoff for projecting false profits and blowing up.

I also think that this is so, especially since according to the investigation conducted by Uppsala Security, the wallet that caused the collapse of UST belonged to Terraform Labs, so investors suffered losses due to the actions of Terra.

https://sentinel-protocol.medium.com/part-1-debunking-the-lunatic-conspiracy-what-you-didnt-know-about-the-activities-behind-the-57227b75d5a6

I did not know that the actions taken were by Tera itself, I always assumed that it was mainly by some other attacker that came in and found a way to make more profit as it got lower and lower, so I was assuming that there was a hacker that took care of this. Maybe I was wrong, and I understand that now, and the research is very precious since it is showing what we didn't know.

But at the same time, I have to say that there is a good case to be made about the fact that these were just some project owners that we invested our money to. Which means that, there are hundreds of these type of projects out there, even if Do Kwon is guilty, we are still doing it to other projects.

[bbc.reporter]

@buwaytress. Agreed. I speculate that each of their company's' performance during the bear market, a coming economic crisis, Ukraine invasion and there is the risk of China's invasion of Taiwan might not be very good. There is also China's defense ministry. He has already warned that America and their allies should avoid the Taiwan Strait or there will be war.

I predict Saylor liquidation fud to begin if bitcoin dumps under $20k and cause more panic.

Except that now he seems to have backtracked somewhat and said that the danger is really not as significant as -- think 3 days ago, I saw the full transcript on phone and he said a lot of things that didn't seem to add up

Takeaways: plenty of assets left to collateralise, margin call wouldn't happen below 21k, and he's leveraged 1.04, so would need 95% drop of purchase price (so that's $2000) to get in trouble.

But I don't know, was a rough interview and vague as hell.

What he said is true. They have the assets to add more to their leveraged position if bitcoin dumps further, however, assuming that the asset is also bitcoin or stocks of Microstrategy would this really be the best decision as an investor? Everyone else is beginning to deleverage and Saylor will add more leverage? This is head shaking.

[Zaun]

@buwaytress. Agreed. I speculate that each of their company's' performance during the bear market, a coming economic crisis, Ukraine invasion and there is the risk of China's invasion of Taiwan might not be very good. There is also China's defense ministry. He has already warned that America and their allies should avoid the Taiwan Strait or there will be war.

I predict Saylor liquidation fud to begin if bitcoin dumps under $20k and cause more panic.

Except that now he seems to have backtracked somewhat and said that the danger is really not as significant as -- think 3 days ago, I saw the full transcript on phone and he said a lot of things that didn't seem to add up

Takeaways: plenty of assets left to collateralise, margin call wouldn't happen below 21k, and he's leveraged 1.04, so would need 95% drop of purchase price (so that's $2000) to get in trouble.

But I don't know, was a rough interview and vague as hell.

What he said is true. They have the assets to add more to their leveraged position if bitcoin dumps further, however, assuming that the asset is also bitcoin or stocks of Microstrategy would this really be the best decision as an investor? Everyone else is beginning to deleverage and Saylor will add more leverage? This is head shaking.

I expect crypto, like stocks to retract. But for some reason i hope Saylor will survive this bear market.
We've had so many idiots associated with crypto; Mcafee, Musk, Garza, Da Kown, it's good to have a normal person, a business person, being associated with crypto right?

[buwaytress]

What he said is true. They have the assets to add more to their leveraged position if bitcoin dumps further, however, assuming that the asset is also bitcoin or stocks of Microstrategy would this really be the best decision as an investor? Everyone else is beginning to deleverage and Saylor will add more leverage? This is head shaking.

Well if he didn't margin call today, I'd say he'd be bullshitting though. But yeah, supposedly the balance sheet was mostly BTC already so he's going to be puffing heavy at his board to convince them to further shore up the bet with even more Bitcoin. It was a risky gamble already and while I'm firmly a Bitcoin hold kind of guy, I'm really not sure it's wise to chase with even more Bitcoin...

We've had so many idiots associated with crypto; Mcafee, Musk, Garza, Da Kown, it's good to have a normal person, a business person, being associated with crypto right?

Not sure I'd classify Saylor as normal... but aren't all us forum folks a collective representative of regular people? I've been doing so many Bitcoin-related small businesses/organisations, all Bitcoin-run and salaried. Granted, mostly have failed (commercially haha) but I'm still a freelancer earning in Bitcoin, and still enjoy trying out and self-funding new projects, again exclusively with Bitcoin.

[Wilhelm]

<...>
Anyway he's just as guilty as Bernie Madoff for projecting false profits and blowing up.

I also think that this is so, especially since according to the investigation conducted by Uppsala Security, the wallet that caused the collapse of UST belonged to Terraform Labs, so investors suffered losses due to the actions of Terra.

https://sentinel-protocol.medium.com/part-1-debunking-the-lunatic-conspiracy-what-you-didnt-know-about-the-activities-behind-the-57227b75d5a6

I did not know that the actions taken were by Tera itself, I always assumed that it was mainly by some other attacker that came in and found a way to make more profit as it got lower and lower, so I was assuming that there was a hacker that took care of this. Maybe I was wrong, and I understand that now, and the research is very precious since it is showing what we didn't know.

But at the same time, I have to say that there is a good case to be made about the fact that these were just some project owners that we invested our money to. Which means that, there are hundreds of these type of projects out there, even if Do Kwon is guilty, we are still doing it to other projects.

I hope that some of these people get harsh punishments just to set an example for others attempting to con others by not having enough collateral.

[barbara44]

@buwaytress. Agreed. I speculate that each of their company's' performance during the bear market, a coming economic crisis, Ukraine invasion and there is the risk of China's invasion of Taiwan might not be very good. There is also China's defense ministry. He has already warned that America and their allies should avoid the Taiwan Strait or there will be war.

I predict Saylor liquidation fud to begin if bitcoin dumps under $20k and cause more panic.

Except that now he seems to have backtracked somewhat and said that the danger is really not as significant as -- think 3 days ago, I saw the full transcript on phone and he said a lot of things that didn't seem to add up

Takeaways: plenty of assets left to collateralise, margin call wouldn't happen below 21k, and he's leveraged 1.04, so would need 95% drop of purchase price (so that's $2000) to get in trouble.

But I don't know, was a rough interview and vague as hell.

Another thing about him is that whenever he says something, we doubt him, he could be saying the truth or he could be telling a lie and we wouldn't know. This is why it's hard for Luna to comeback, not because it is a bad coin or a project or anything like that, at the hands of someone everyone trusts it could recover even after all of what has happened.

But as we all know, nobody really trusts Do Kwon after what happened, and that is why it's clear to me that Luna will never recover, because people do not want to invest into something he is involved with anymore. Leverage or not, truth or not, if we doubt what he is saying, then what he does doesn't matter anymore.

[ScamViruS]

I expect crypto, like stocks to retract. But for some reason i hope Saylor will survive this bear market.
We've had so many idiots associated with crypto; Mcafee, Musk, Garza, Da Kown, it's good to have a normal person, a business person, being associated with crypto right?

New faces come to the crypto market every time and they try many things but fail. Elon Musk is another name that has tried to make a lot of impact in the crypto market and he has taken advantage of it. Such people will keep coming as time goes on and we have to see their nonsense activities. Micro strategy took entry into the market at a time when the bull market, I do not know if it was the decision of their financial advisor or the decision of the CEO to take entry at a high price!

[Wilhelm]

I expect crypto, like stocks to retract. But for some reason i hope Saylor will survive this bear market.
We've had so many idiots associated with crypto; Mcafee, Musk, Garza, Da Kown, it's good to have a normal person, a business person, being associated with crypto right?

New faces come to the crypto market every time and they try many things but fail. Elon Musk is another name that has tried to make a lot of impact in the crypto market and he has taken advantage of it. Such people will keep coming as time goes on and we have to see their nonsense activities. Micro strategy took entry into the market at a time when the bull market, I do not know if it was the decision of their financial advisor or the decision of the CEO to take entry at a high price!

Just an idea based on what I think I know about the american system....

Buy high with a long term horizon
Get a tax deduction on the losses you can spread over the years to come
It goes back up an you have profit and low taxes

[bbc.reporter]

@buwaytress. Agreed. I speculate that each of their company's' performance during the bear market, a coming economic crisis, Ukraine invasion and there is the risk of China's invasion of Taiwan might not be very good. There is also China's defense ministry. He has already warned that America and their allies should avoid the Taiwan Strait or there will be war.

I predict Saylor liquidation fud to begin if bitcoin dumps under $20k and cause more panic.

Except that now he seems to have backtracked somewhat and said that the danger is really not as significant as -- think 3 days ago, I saw the full transcript on phone and he said a lot of things that didn't seem to add up

Takeaways: plenty of assets left to collateralise, margin call wouldn't happen below 21k, and he's leveraged 1.04, so would need 95% drop of purchase price (so that's $2000) to get in trouble.

But I don't know, was a rough interview and vague as hell.

What he said is true. They have the assets to add more to their leveraged position if bitcoin dumps further, however, assuming that the asset is also bitcoin or stocks of Microstrategy would this really be the best decision as an investor? Everyone else is beginning to deleverage and Saylor will add more leverage? This is head shaking.

I expect crypto, like stocks to retract. But for some reason i hope Saylor will survive this bear market.
We've had so many idiots associated with crypto; Mcafee, Musk, Garza, Da Kown, it's good to have a normal person, a business person, being associated with crypto right?

I also hope Saylor survives this bear market. If he was liquidated this will certainly cause a dump lower than $5000 if some articles from mainstream news media are correct in their reports that his liquidation price is around $3000. This will also be very bad for business in the cryptospace.

[bbc.reporter]

<...>
Anyway he's just as guilty as Bernie Madoff for projecting false profits and blowing up.

I also think that this is so, especially since according to the investigation conducted by Uppsala Security, the wallet that caused the collapse of UST belonged to Terraform Labs, so investors suffered losses due to the actions of Terra.

https://sentinel-protocol.medium.com/part-1-debunking-the-lunatic-conspiracy-what-you-didnt-know-about-the-activities-behind-the-57227b75d5a6

I do not know where to find Binance's analysis, however, it appears that CZ is telling everyone that Uppsala Security's assumption that the address or some of those addresses mentioned in their analysis is wrong and they do not belong to Terraform Labs.



Based on our analysis, this report is wrong. Not defending Terra, I have criticized them heavily. Just pointing out a mistake. Cunningham's law. The address in the article does not seem to belong to Terra.

Source https://mobile.twitter.com/cz_binance/status/1537930945981841415?s=12&t=swxOClSHPwlqYmhE99_e1w


Also, according to this article, Luna's whistleblower has also mentioned that the address is Kucoin's hot wallet.



The report caused further panic in the Terra community after it went viral. Interestingly, popular Terra whistleblower FatMan slammed the report as false on the grounds that the address does not belong to Terra developers, as claimed by Coindesk and Uppsala Security.

FatMan said the address belongs to a KuCoin hot wallet as opposed to being owned by the TFL team.

“I am disappointed that an outlet as prestigious as CoinDesk Korea would publish this without running basic checks,” FatMan said. 

Source https://cryptonews.net/news/altcoins/8418303/

[Daltonik]

Whatever it was, in fact, Do Kwon should be responsible for what happened to Luna by the way, a class action lawsuit was filed against Terraform Labs and its head Do Kwon in the court of the Northern District of California from Terra investors demanding to reimburse them the purchase price of Luna tokens. https://www.docdroid.net/fAFxC9p/terra-lawsuit-pdf

https://twitter.com/tier10k/status/1538151023692374016?ref_src=twsrc%5Etfw

[bbc.reporter]

@Daltonik. He should be very responsible and it will not be very shocking if he will go to prison for this. However, these onchain analyst and security organization should rescan and confirm everything before publishing their findings. This is their responsibility.

In any case, what appears to be the bigger problem is Celsius and 3 Arrows Capital's collapse. It is speculated that Celsius holds billions in institutional investors' money which is also speculated that it has deployed and worth half of the whole TVL of defispace. The other problem is 3 Arrows Capital. They have billions of undercollaterized loans from the biggest cryptolenders, Nexo, Blockfi, Celsius, Genesis.

[Daltonik]

In any case, what appears to be the bigger problem is Celsius and 3 Arrows Capital's collapse. It is speculated that Celsius holds billions in institutional investors' money which is also speculated that it has deployed and worth half of the whole TVL of defispace. The other problem is 3 Arrows Capital. They have billions of undercollaterized loans from the biggest cryptolenders, Nexo, Blockfi, Celsius, Genesis.

Celsius thoughtlessly invested users' funds in experimental DeFi protocols that had significant security gaps, for example, in December 2021, the BadgerDAO protocol was hacked by hackers, where Celsius lost $50 million, in February 2022, when the developers of the Stakehound protocol lost users' private keys, the losses of Celsius were estimated at 35,000 Eth ($70 million at that time), and the loss of $500 million during the collapse of Luna/UST, and I think this is only what is known at the moment.

[bbc.reporter]

@Daltonik. What is also head shaking is Su Zhu and 3 Arrows. They have already made their profit from the bull market, however, they took loans and traded on leverage. If they only waited for the bubble pop and if they have bought bitcoin, ethereum, also bluechip coins and tokens they would be richer than Bill Gates in 8 years hehehee.

[bbc.reporter]

News update.

It appears that there are 2 government regulators that have an arrest warrant for Do Kwon hehehe. Terra Luna might also be recorded in the crypto history books as the biggest ponzi schemes of the cryptospace. This is much bigger than Bitconnect.

How much was Bitconnect's highest market capitalization? Luna might have been more than 50 times bigger, I reckon.



South Korean court issued an arrest warrant for Do Kwon, CEO of Terraform Labs, four months after the collapse of the Terra ecosystem, its native luna token and its TerraUSD algorithmic stablecoin — which together wiped out some $40 billion in value.

Chosun Ilbo, a South Korean newspaper, was first to report the news. The warrant was issued by the Seoul Southern District Prosecutors' Office's Joint Investigation Team on Financial Securities Crimes (led by director Dan Sung-han) and 2nd Division of Financial Investigation (led by chief prosecutor Chae Hee-man), according to the report.

Kwon is currently believed to reside in Singapore, per the report, which stated that there have also been warrants issued for the arrest of Nicholas Platias, another of Terraform Labs’ founders, and Han Mo, another employee. They are charged with violating the Capital Markets Act.

Source https://www.theblock.co/post/169825/south-korean-court-issues-warrant-for-do-kwons-arrest

[OgNasty]

News update.

It appears that there are 2 government regulators that have an arrest warrant for Do Kwon hehehe. Terra Luna might also be recorded in the crypto history books as the biggest ponzi schemes of the cryptospace. This is much bigger than Bitconnect.

How much was Bitconnect's highest market capitalization? Luna might have been more than 50 times bigger, I reckon.



South Korean court issued an arrest warrant for Do Kwon, CEO of Terraform Labs, four months after the collapse of the Terra ecosystem, its native luna token and its TerraUSD algorithmic stablecoin — which together wiped out some $40 billion in value.

Chosun Ilbo, a South Korean newspaper, was first to report the news. The warrant was issued by the Seoul Southern District Prosecutors' Office's Joint Investigation Team on Financial Securities Crimes (led by director Dan Sung-han) and 2nd Division of Financial Investigation (led by chief prosecutor Chae Hee-man), according to the report.

Kwon is currently believed to reside in Singapore, per the report, which stated that there have also been warrants issued for the arrest of Nicholas Platias, another of Terraform Labs’ founders, and Han Mo, another employee. They are charged with violating the Capital Markets Act.

Source https://www.theblock.co/post/169825/south-korean-court-issues-warrant-for-do-kwons-arrest

I'm very curious how this will turn out.  I'm not sure there's evidence this was an actual Ponzi from the start, but I haven't cared much about the saga other than that I was saying how stupid it was for him to telegraph his buys like that, but now I see that he was doing it on purpose to pump Bitcoin for himself to get rich and then dump on everyone.  I'm not sure that's illegal though, but maybe we'll find out why soon enough.  It looks like they've taken his passport now to try and stop him from fleeing the country.  I'm sort of surprised he isn't already on a beach somewhere getting plastic surgery and a new identity, but maybe he is.  This is the most interesting case since Razzlekhan. 

[AmoreJaz]

I'm very curious how this will turn out.  I'm not sure there's evidence this was an actual Ponzi from the start, but I haven't cared much about the saga other than that I was saying how stupid it was for him to telegraph his buys like that, but now I see that he was doing it on purpose to pump Bitcoin for himself to get rich and then dump on everyone.  I'm not sure that's illegal though, but maybe we'll find out why soon enough.  It looks like they've taken his passport now to try and stop him from fleeing the country.  I'm sort of surprised he isn't already on a beach somewhere getting plastic surgery and a new identity, but maybe he is.  This is the most interesting case since Razzlekhan.  

i agree with you here, he should have disappeared by now. but maybe, he was not expecting that the authorities will indeed arrest him. or maybe, he has confidence that they can't detain him because there are no solid evidences for him. in this market, it is indeed hard to prove if the project is a ponzi or not. i guess, authorities will find another case against him so they can keep do kwon in jail.