Binance delves deeper into FatMan
Investors went wild when the TerraUSD (UST) stablecoin and LUNA dominated the crypto sphere several months ago. The two cryptocurrencies delivered exceptional returns for those who invested early, and it appeared that Do Kwon and his pet projects could do no wrong in the cryptocurrency market.
As quickly as they rose to the top of the crypto leaderboards, UST and LUNA fell from grace — and now a slew of troubling legal challenges are threatening to derail their recovery.
Speaking to Fortune about Binance’s support for Terra’s comeback attempt, CEO Changpeng “CZ” Zhao said he was very surprised that Kwon had created Basis Cash, an earlier failed algorithmic stablecoin project. He admitted that his team could have done a better job of due diligence.
CZ asserts that he has never spoken directly to the Terra creator even after the abrupt crash of UST and LUNA. Surprisingly, the Binance CEO has been following FatManTerra’s tweets. In fact, he has now advised his team to conduct a more thorough investigation into the allegations leveled against Kwon and Terra by the account.
Following Terra’s demise, FatManTerra, who claims to be affiliated with Terra’s Research Forum, has been posting scathing exposés of Terraform Labs, the Luna Foundation Guard, and Kwon himself since the Terra tragedy.
According to the anonymous account, Terra and its CEO had manipulated UST and LUNA prices by paying various cryptocurrency exchanges and third-party operators, which led to massive losses for their users. The account also claimed that Kwon and other top Terra employees “have been earning jaw-dropping farming rewards unencumbered via insider trading, tokenomics adjustments, and barriers to entry.”
FatManTerra also criticized Terra for failing to compensate smallholders who lost money during the UST de-pegging event.
Terra’s Mounting Legal Woes
The Terra dumpster fire is still out of control.
Following the tragic crash of the Terra network earlier this month, many accused Do Kwon of foul play. He was also criticized for tax evasion and unethical profiteering.
South Korean regulators are also looking into whether Kwon committed fraud by targeting investors with his failed cryptocurrency projects. According to ZyCrypto, prosecutors in the country have summoned all former Terraform Labs employees as part of an investigation into whether there was internal price manipulation
Meanwhile, CZ claims that Binance will not hesitate to share any useful information gleaned from their investigations with law enforcement.