Reports that Terra (the new LUNA or LUNA2) founder Do Kwon was allegedly withdrawing $80 million a month before the project collapsed on Friday led community members to comment on the matter.
In a tweet, cryptocurrency trader and analyst Michaël van de Poppe said Kwon should be jailed. He compared the CEO of Terraform Labs to notorious fraudster Bernie Madoff. “Honestly, he deserves jail time,” Van de Pope wrote.
Twitter user DaisiObanla agreed with Van de Poppe. According to Daisi Obanla, he wants to hear about the right to be sentenced to 150 years in prison without parole. In addition, footballer Nicolas Boulay joined in, writing that Terra executives “need to feel the wrath of the community.”
#DoKwon is not a #lunc and will never be able to control the outflow of assets again.Having said that, this guy plays the role of an investor, leaving people out of financial security and needs to feel the wrath of #community #decentralized
— Nicolas Bly (@NicolasBoulay) June 10, 2022
While there are many calls for jail time, some disagree. President Bodhi tweeted that they disagreed, saying “no one is putting a casino owner in jail”, suggesting that investing in the asset is a gamble. Since then, Twitter druid Andrew has also said that Kwon has not done anything against criminal law.
RELATED: Appeals court rules Do Kwon, Terraform Labs must heed SEC subpoena in September
South Korean authorities have also opened an investigation into Terraform Labs and its staff for alleged Bitcoin (BTC) theft. With the cooperation of the exchange platform, the authorities were able to freeze the relevant funds. Police launched the investigation after receiving a tip from an informant who worked for the company.
In the Terra debacle, South Korea’s ruling party revealed plans to form a digital asset committee that would become the regulator of cryptocurrencies. The group will set policy and oversee the industry before establishing a government entity dedicated to crypto.