Recent data indicates that three thousand primary wallets, with multiple links to Terraform Labs, saw an outflow of over $6 billion prior to the de-peg of TerraUSD UST/USD. This strategic exit prior to the extreme loss faced by retail investors brings numerous ethical and legal concerns to Terraform Labs.
What Happened: A report by Arcane Research released this past week indicates that a concentrated number of wallets had an efflux of $6 billion of Luna LUNA while tens of thousands of retail investor wallets accumulated the same amount. These findings indicate that Do Kwon and Terraform Labs may have calculated an exit in order to secure liquidity.
The report compares the Terra ecosystem to “a sinking cruise ship, the captain and distinguished guests fled in superyachts, leaving most passengers behind without lifeboats.”
Also Read: Do Kwon Said To Be Working On Another Decentralized Stablecoin For Terra 2.0
Why It’s Important: The crash of Terra’s token Luna was detrimental to institutional and retail investors globally, causing steep losses of over $60 billion. In past weeks, investors and media have demanded accountability from Terraform Labs and Kwon. The report indicating the exit of liquidity suggests that this crash may have been pre-determined for personal gains.
What’s Next: As legal teams and public media in South Korea and around the world seek answers, such findings further jeopardize the future of Terraform Labs and Kwon. Early Luna holders and founders not being affected by the crash, at the magnitude of global investors, further highlights the urgency and cruciality of accountability.