Home Crypto News 1 yr after $11M LUNC bets; Do Kwon wished, funds paid, hedge caught on FTX

1 yr after $11M LUNC bets; Do Kwon wished, funds paid, hedge caught on FTX

by Cryptoroz

Roughly one yr prior, on Mar. 14, 2022, cryptocurrency dealer GiganticRebirth (GCR) invited the then co-founder of CEO of Terraform Labs, Do Kwon, in a $10 million wager that the worth of Terra Luna (LUNC) can be decrease than its then worth of $92.4 per token one yr later. The blockchain government accepted the provide, the second within the sequence after the day prior, when cryptocurrency dealer Algod supplied a $1 million wager that LUNC can be decrease than $88 per token on Mar. 13, 2023, to which Kwon additionally accepted, leading to two bets value $11 million and prize cash pool of $22 million .

The funds, which totaled $22 million from all contributors, had been held in escrow by blockchain character Cobie on their Ethereum tackle. Cobie claimed on the time, a sizzling pockets was given to contributors “on my cell phone whereas i used to be in the midst of africa, when i wakened there was $22m deposited.”

“i did not need 22m on a cell tent whereas I used to be dwelling in a tent amongst lions lmao.”

As informed by Cobie and substantiated by blockchain knowledge, the blockchain character paid out the bets from the new pockets in April 2022, shortly after the $40 billion LUNC and accompanying algorithmic stablecoin Terra USD (USTC) ecosystem imploded, with LUNC buying and selling at fractional decimal values near zero. Nonetheless, Cobie additionally said in Dec. 2022: 

“I truly paid out the wager shortly after Luna went to 0, after which purchased sufficient Luna to hedge in case it one way or the other went again to $88. However I misplaced my hedge (custodied in FTX) so if Luna goes to $88 within the subsequent 3 months I’m fucked”

Because the wager was energetic till mid-March of 2023, Cobie was required to carry collateral regardless of LUNC’s collapse, because the funds had been paid out early, and circumstances might differ at settlement. On the time of publication, LUNC is presently buying and selling at $0.000124 per token.

Final Nov. 2022, cryptocurrency change FTX, then third-largest on the earth by quantity, filed for chapter over allegations of misappropriating customers’ funds and left the deposits of over 1 million collectors frozen. On Apr. 4, 2022, Cobie transferred the prize cash and principal, value $22 million in stablecoins, to winners GCR and Algod through FTX. The next movement of funds is unclear.

On Sept. 26, 2022, Interpol issued a crimson discover arrest warrant for Do Kwon per the request of South Korean prosecutors over accusations of fraud referring to Terra Luna’s collapse. The previous blockchain government is reportedly hiding in Serbia, which doesn’t have an extradition settlement with South Korea. Other than being out $11 million from the bets, the U.S. Federal Bureau of Investigation and Division of Justice reportedly started probing Terra Luna’s collapse on Mar. 14, 2023. One month prior, the U.S. Securities and Alternate Fee charged Terraform Labs and former CEO Do Kwon with “defrauding buyers in crypto schemes.”


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