Terraform Labs Employee Accuses Do Kwon of Price Manipulation

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  • Prosecutors say they have evidence of Do Kwon ordering price manipulation of the LUNA token
  • LUNA rose over 48,500% between 2021 and 2022
  • Prosecutors say they have a text conversation where Kwon ordered “specifically ordered price manipulation”

South Korean prosecutors have accused Terraform Labs founder Do Kwon of price manipulation of the LUNA token, saying they have evidence of it. An unnamed former Terraform Labs employee handed over a text conversation in which Kwon “specifically ordered price manipulation” of the LUNA token that unwound spectacularly along with the UST stablecoin in May, leading to Kwon’s arrest being sought.

Did Kwon Manipulate LUNA Price?

The allegation of LUNA price manipulation came via a local report from the Korean Broadcasting System (KBS) which said that prosecutors have obtained a “conversation history” in which Kwon ordered the upwards manipulation of the LUNA price. LUNA’s price action in the last bull run was a sight to behold, rising over 48,600% in a little over a year before its spectacular collapse in early May.

For obvious reasons prosecutors neglected to reveal further details of the conversation to KBS, although the report did feature Kwon’s representative denying the allegations. Both Kwon and his representatives have also previously denied alleged violations of South Korea’s capital markets laws, which is the charge that South Korean prosecutors want to get him on.

Victims Worried Kwon Will Wriggle Free

In September, Terraform Labs said the case against Kwon has become “highly politicized” and that prosecutors expanded the definition of a security in response to public pressure. Indeed, there is a fear among Terra victims that Kwon will manage to slip through the net and escape with a minor charge, but with the civil suits piling up against him, it’s certainly not going to be an easy few years for him.