Was Do Kwon's Terra behind the infamous $84 million UST dump that triggered the Terra/LUNA collapse? The crypto world is still reeling from the events of May 2025. On that fateful day, an anonymous user dumped over $84 million worth of UST on the market, sparking a chain reaction that ultimately led to the de-pegging and catastrophic downfall of UST and LUNA. But was this a calculated move orchestrated by, or at least known by, someone within the Terra ecosystem?
The timeline is critical. Shortly after the initial dump, the Terra foundation responded by withdrawing over $150m UST from the Curve liquidity pool. This action, intended to stabilize UST, ultimately proved insufficient and may have even exacerbated the situation. Did this withdrawal stem from a genuine attempt to save the ecosystem, or was it a desperate measure to cover up something more sinister?
Do Kwon slammed allegations painting him as the main villain behind the devastating collapse of Terra's UST and LUNA. He has consistently denied any involvement in market manipulation or insider trading. However, conspiracy theories continue to swirl, fueled by the magnitude of the losses and the speed at which the Terra empire crumbled. A new claim surfaced online suggesting Do Kwon, the CEO and co-founder of the controversial Terra (LUNA) and TerraUSD (UST) ecosystems, denied accusations that the ecosystems had been cashing out prior to the collapse. This only intensifies the scrutiny on his actions and decisions.
The fall of The Terra network and its leader, Do Kwon, rose to the highest tier of the crypto world thanks to big-shot investors, only to fall apart within a few days in May 2025 is a cautionary tale. While definitive proof remains elusive, the question of whether Do Kwon's Terra was complicit in, or even the architect of, the $84 million fishy UST dump continues to haunt the crypto community. Was it simply a case of poor risk management and a flawed algorithmic stablecoin, or was something more nefarious at play? The investigation is ongoing, and the search for answers remains paramount.