LUNA The effects of the Terra LUNA and Terra USD (UST) crash have remained over two weeks since the incident. The collapse of the two coins has created discussions in the crypto community about some insiders that could have been involved.

Some whistleblowers from the Terra community have accused some prominent figures in the crypto community of being behind the crash. These people include the co-founder of Terraform Labs, Do Kwon, the CEO of Jump Crypto, Kanav Kariya, and the CEO of FTX, Sam Bankman-Fried.

Whistleblower says insider details caused Terra LUNA crash

“FatMan”, an active member of the LUNA community who is also popular in governance groups, has shared details of how an insider deal triggered the depegging of the UST stablecoin that led to the ultimate collapse of LUNA.

LUNA and UST have lost most of their value, and according to FatMan, the loss was caused by several insiders. In a Twitter post, the community member said that he had gathered details submitted by whistleblowers. FatMan said that Do Kwon was paying Jump Capital a fixed amount of LUNA tokens each month to pay off a debt. He hinted that the monthly payout was worth millions.

Cryptoassets are a highly volatile unregulated investment product.

FatMan also tagged Bankman-Fried in the thread, saying he knew about a “$30% Serum handshake with Jump.” He also said he had more details about Jump Crypto bailing out the Solana Wormhole bridge exploited for $320 million. Jump Crypto deposited 120,000 Ether tokens to Wormhole and replenished the supply following the exploit.

According to FatMan’s tweets, the rescue of the Wormhole bridge by Jump Crypto was deeper, saying there was a secret deal between the CEO of FTX and Kanav Kariya. So far. FatMan has yet to provide any evidence of this.

Terra is a centralized protocol

FatMan also revealed details of the level of centralization within the Terra ecosystem. A source within the Luna Foundation Guard said the council voted two times amid the UST crisis. $750 million worth of Bitcoin and an additional 30,000 BTC from the UST reserves were used to reestablish the UST peg. However, the remaining funds were transferred to Terraform Labs without involving the council.

The source said that the transfer of the funds was not made after a council vote, which created a sense of centralization. Do Kwon failed to conduct a proper vote before taking out Bitcoin from the UST reserves. While Bankman-Fried has denied his involvement with Terra, Kwon and Kariya have yet to respond.

Cryptoassets are a highly volatile unregulated investment product.