HomeAltcoinDo Kwon, the creator of Terra (LUNA), is being stalked by an...

Do Kwon, the creator of Terra (LUNA), is being stalked by an Anonymous Group.

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The Terra (Luna) blockchain’s demise has triggered a chain reaction in the world of yield-seeking securities lending and trading platforms. Not only did private investors who participated directly in Terra lose money, but so did hedge funds such as 3AC and lending platforms such as Celsius.

 

The analytics firm Nansen has explored liquidity concerns in the Ethereum-based stablecoin stETH, which has caused severe problems for both 3AC and Celsius. The investigation of the occurrences found that the quandary began when the Terra network failed.

The huge inventories of stETH utilized by the Terra network to generate rewards via the Anchor protocol enabled the propagation of problems from Terra to stETH. It functioned until TerraUSD’s dollar peg was broken. However, the ensuing price decline intensified to the point that even the major players could only leave with significant losses.

The problem was exacerbated by the desire to drive up stETH rates even more with leveraged foreign investments on Aave, which eventually proved to be excessively hazardous. To honor the maturing debts, the stETH holdings on the Ethereum side have to be liquidated in bulk. The following fire severed the connection between stablecoins.

As a result, the hedge fund 3AC is unable to repay obligations in excess of $100 million. According to Sky News, a judge has already ordered its insolvency. So far, Celsius has only avoided insolvency by ceasing all client payments. However, it appears that the business concept has also failed in this case.

Nansen concluded that, while 3AC and Celsius were undoubtedly at the core of the two episodes, they were just victims and not the causes of the market upheavals.

Private investors have lost billions of dollars, but it appears that just one individual is to blame: Terra founder Do Kwon.

He is now the target of over 1000 fraud complaints from disgruntled investors, and the well-known hacking organization Anonymous is now investigating him. A video has emerged on the internet in which the gang declares that they will work together to bring Do Kwon to justice.

“The founder of the Terra Luna ecosystem, Do Kwon, is single-handedly responsible for scamming small investors out of billions of dollars.

Do Kwon became known for his arrogant way of trolling his competitors and critics and pretending he was never going to fail… However, the markets proved him wrong. After arrogance comes downfall.

Anonymous sifts through Do Kwon’s entire past, from the day he got into crypto. We’ll see what we can bring to light… The only thing that matters now is holding Do Kwon to account and bringing him to justice as soon as possible.”

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