Do Kwon, one of the creators of the defunct Terra ecosystem, is in legal jeopardy as a result of an investigation being conducted by Binance into the “FatManTerra” allegations.
FatMan is being investigated by Binance
Investors were surprised by the stablecoin TerraUSD (UST) and LUNA many months ago. The two cryptocurrencies generated significant profits for early investors, and it seemed that Do Kwon’s pet projects would be impossible to thwart in the cryptocurrency market.
After rising to the top of the cryptocurrency chart, both UST and LUNA suffered declines, and the number of legal challenges is growing.
Binance CEO Changpeng “CZ” Zhao told Fortune that he was surprised to discover that Kwon had built a failed algorithmic stablecoin called Basis Cash. Zhao was quoted as saying that he was surprised to learn that Kwon had invented Basis Cash. He said his team hadn’t done enough research.
Even after the price drop of UST and LUNA, CZ maintains that he has never communicated with the creator of Terra. Binance CEO follows FatManTerra on Twitter. He has instructed his staff to look into the accusations made against Kwon and Terra in the story.
Since Terra’s death, the individual known as FatManTerra, who claims to be affiliated with the Terra Research Forum, has been spreading false information about Terraform Labs, the Luna Foundation Guard, and Kwon.
The anonymous account claimed that Terra and its CEO were guilty of manipulating the values of UST and LUNA cryptocurrencies by offering bribes to cryptocurrency exchanges and third-party operators, leading to significant financial losses for Terra clients. Reportedly, Kwon and other high-level Terra employees “received staggering farm prizes, unfettered by insider trading, tokenomics reforms, and entry barriers.” [citation needed]
FatManTerra criticized Terra for failing to compensate smallholders for untying the UST in the forex market.
Terra legal problems
The fire in the Terra container continues.
Following the collapse of Terra earlier this month, many pointed the finger at Do Kwon. Additional accusations included tax evasion and speculation.
South Korean authorities are investigating whether Kwon misled investors with his failed cryptocurrency ventures. According to the ZyCrypto report, prosecutors have issued subpoenas to all former Terraform Labs employees to examine allegations of price gouging within the company.
CZ stated that Binance will share any information that may be useful with law enforcement. “Look, if we can draw any conclusions from the data we have, we should alert the security forces,” he said. “Look, if we can make any inferences from the data we have,” he added. We cannot verify or refute any of the claims.”
