Terra’s CEO has finally responded to numerous allegations about his company.

Recently, numerous reports have been about the Terra incident and how the TerraForm Labs (TFL) team handled the situation.

Responding to these unfavorable reports about TFL, Do Kwon, the CEO, and founder of the company has dismissed these reports, claiming they are false but his Twitter still remains private.

Source: Twitter

Kwon’s Response to Negative Reports

The Terra exec took to microblogging platform Twitter to comment on recent reports about the company during the days when the project was still under development.

Recall that earlier this week, an anonymous “Terra’s Anchor program developer” alleged that Kwon refused to heed warnings that the cryptocurrency project will crash if he raises interest rates above 3.6%.

The “core developer” noted that he was shocked to find out that Kwon would be launching the Terra project at a ridiculously high interest of 20%.

Kwon, via his Twitter account, noted that the report is false while urging the cryptocurrency community to run a quick check on Terra’s code to discover whether such occurred.

“Open source development is transparent, and I would urge the media to check if a single line of code by your ‘experts’ has ever made it into production,” Kwon said.

for the airdrop he said:

“while TFL intends to continue supporting and building on the Terra 2.0 network, it is not by any means a “TFL-led” chain – we consciously bowed out of airdrop allocations and all the decisions are being made by various community groups, albeit in a rocky fashion.”

More Negative News About Terra

Meanwhile, reports about Kwon ignoring “expert” advice on the expected collapse of Terra should the project offer higher interest, is not the only negative news about the company in recent times.

As reported, a South Korean police official disclosed to Bloomberg today that TFL employees are under investigation for embezzling its Bitcoin reserve.

“The Seoul Metropolitan Police Agency is investigating a report about a “suspicious” crypto wallet that may have been used to embezzle Bitcoin, an official said by phone on Thursday,” Bloomberg reported today.

In other reports, some employees of the TFL reportedly told the United States Securities and Exchange Commission (SEC) that Kwon had engaged in a money laundering scheme.

The employee noted that Kwon used the scheme to transfer as high as $80 million monthly to a crypto wallet and to other foreign accounts prior to when the unfortunate incident befell the company.

The development is one of the reasons why the SEC is planning to charge Kwon and his company for their roles in causing massive losses to investors.

Kwon to be Proactive In Communicating to the Press

Based on the numerous negative reports about the company in recent times, Kwon has stated that TFL and the company will be more proactive in communicating to the press going forward, in order to disclose the right information to the public.

For the time being, Kwon has taken his Twitter account private, allowing only a handful of his followers to gain access to his account going forward.

While it is not clear why he took the stringent action, Kwon suggested in today’s tweet that Terra’s builders need to be left alone to concentrate, as these negative reports could cause distractions.

“I remain excited by the continued passion and ingenuity of Terra’s builders as the community navigates this difficult time – let’s leave them alone to build,” Kwon added.

Key Terra employees interviewed by the US SEC have revealed a potential money laundering scheme run by Do Kwon.

Since the collapse of Terra Luna and UST and the subsequent launch of Terra 2.0, all eyes have been on Do Kwon and his team at Terraform Labs. Numerous allegations have been leveled against the founder and TFL, with some carrying strong evidence. Even the South Korean authorities have launched an investigation into TFL and Do Kwon.

Now, the US SEC is getting involved. According to information revealed by Naver, Do Kwon knew that Terra was about to go down months prior. Apparently, within those months, Kwon cashed out lots of money from company funds.

$80 Million A Month

Apparently, Do Kwon was very keen to cash out as many funds as possible before Terra Luna went down. The interviewed employees have confirmed to the SEC that Do Kwon transferred funds to the tune of $80 million a month from company funds to secret crypto wallets and foreign bank accounts. Basically, this is akin to money laundering, and US authorities don’t like that.

If these charges are proven with enough evidence, Do Kwon and TFL could find themselves in more trouble than they are right now. The two entities are already facing tax evasion charges in South Korea, with the taxman demanding around $78 million in tax settlement and fines.

They Predicted The Collapse Of Terra

Further reports from South Korean media reveal that Do Kwon and TFL were aware that Terra was heading for the brick wall months prior to the Luna and UST collapse.

The mentioned employees, who have been interviewed remotely, have confirmed that they warned Kwon about the potential looming danger pertaining to the design flaws of the Terra ecosystem, but Kwon ignored the warnings and went on with his money laundering racket.

Yesterday Terra Anchor Developer confirmed Do Kwon Deliberately Raised Interest From 3.6% to 20% A Week Before Launch making UST crash.

“Just before the launch, I suggested to CEO Kwon that the interest rate should be lowered, but it was not accepted,”

Today, a US Court ordered Terra’s Do Kwon and Terraform Labs to comply with the subpoenas issued by the SEC.

A Proposal To Burn LUNC Causes A Jump In Price And 100% Increase In Trading Volume.

A LUNC investor has fielded a proposal to burn tokens and caused a sharp rise in price.

For some time now, the Terra community has complained that Do Kwon and Terraform Labs have abandoned LUNC and UST. An initial demand by the community for TFL to implement a LUNA burning mechanism was rejected, and Do Kwon and his team instead elected to create Terra 2.0.

Now, another proposal by a LUNC investor is causing ripples within the community and the crypto market. The proposal suggests a straightforward LUNC burning mechanism that will lead to a decrease in supply and an increase in price.

The LUNC Burning Mechanism

According to the proposal, a 1.2% tax/burn will be implemented on all LUNC transactions – both buy and sell. Every time a transaction is initiated, 1.2% of the tokens involved will be burned. This will create a situation where LUNC tokens will continuously decrease in the market. A decrease in supply means an increase in demand and that translates into an increase in price.

However, this burning mechanism will be halted once the total supply of LUNC tokens reaches 10 billion LUNC. After that, the supply will remain constant and will not be tampered with forthwith.

The proposal says:

“A Tax Burn mechanism is to be implemented on LUNC to reduce the Total Supply. Implement a Tax + Burn mechanism on each buy-sell transaction: 1.2% burn tax This mechanism should be true until the total supply = 10 billion LUNC, after that, this mechanism is disabled and the total supply can never be changed.”

Terra Team To Support It?

The proposal appeals to Terra to support the mechanism and make official announcements of the same on all social platforms.

Exchanges will also be needed to support the burning. Terra will share the official burning address on its social media outlets. This will work to stop the scams where people have been given false burning addresses and ended up sending their tokens to fraudsters.

Apparently, the 1.2% tax is a comfortable figure that the community can work with as opposed to earlier proposals that suggested higher percentages.

85% Support Proposal

Voting on the proposal is currently in progress, and close to 85% of the voters support the motion. These have over 133 million LUNA. Around 14% have abstained, while a measly 0.4% have voted NO with the vote.

These have just around 667,447 LUNA. From the look of it, the proposal is bound to pass. It’s yet to be seen whether Do Kwon, TFL, and exchanges will support LUNC burning.

LUNC is already reaping from the buzz created by the proposal. The coin is up 18% on the daily, and still going up. The price is now at $0.000073. The trading volume has also gone up by 107% in 24 hours to reach $349.6 million.