Do Kwon’s alleged $80 million withdrawals before Terra fallout triggers mixed reactions
Reports that Terra (the new LUNA orLUNA2) founder Do Kwon allegedly withdrew $80 million monthly before the project crashed surfaced Friday, leading members of the community to voice their opinions on the matter.
In a tweet, crypto trader and analyst Michaël van de Poppe said that Kwon deserves imprisonment. He compared the Terraform Labs CEO to the infamous fraudster Bernie Madoff. “Honestly, he deserves jail,” Van de Poppe wrote.
Twitter user DaisiObanla also agreed with Van de Poppe. According to DaisiObanla, he wants to hear the news that Kwon is sentenced to 150 years in prison without any parole. Moreover, football player Nicolas Boulay also chimed in, writing that the Terra executive “needs to feel the wrath of the community.”
#DoKwon isnt #lunc and will never be able to control the outflows of the assets again. That being said, this man has played the investors and cost people their financial safety and needs to feel the wrath of the #community #decentralized
— Nicolas Boulay (@NicolasBoulay) June 10, 2022
While there are many who call for jail time, some disagree with the sentiment. President Bodhi tweeted that they disagree, saying that “nobody puts casino owners in jail,” implying that investing in the asset was a gamble. Following this, Twitter Druid Andrew also said that Kwon didn’t do anything that violates the criminal code.
Related: Appeals court rules Do Kwon, Terraform Labs must heed SEC subpoena served in September
Authorities in South Korea have also started to investigate Terraform Labs and its workers for an alleged Bitcoin (BTC) embezzlement. With the cooperation of an exchange platform, the authorities were able to freeze the funds in question. The investigation was initiated after the police received a tip from an informant who worked in the firm.
Amid the Terra debacle, South Korea’s ruling party revealed plans to form a digital asset committee that will become crypto’s watchdog. The organization will prepare policies and supervise the industry prior to the formation of a government entity dedicated to crypto.