Do Kwon blames SBF for Terra’s downfall + other crypto updates

Temitope Akintade
Do Kwon Blames SBF for Terra downfall + other stories for the week

Do Kwon, the co-founder of the defunct Terraform Labs, yesterday asked Sam Bankman-Fried (SBF) and Alameda Research to come clean about their activities in the events that led to the collapse of Terra earlier in May.

The accusation by Do Kwon came just a few days after Changpeng Zhao (CZ) accused the same SBF as one of the greatest fraudsters in history. SBF has faced intense backlash and scrutiny recently and it doesn’t look like stopping anytime soon. 

This and other major crypto updates from around the world this week are included in this article. 

Bybit lays off staff

Crypto exchange Bybit announced that it will be laying off nearly 30% of its global workforce on Monday. The Singapore-headquartered exchange’s move is seen as part of a larger reorganization of the business as Bybit looks to refocus its efforts during the ongoing bear markets. 

Do Kwon blames SBF for Terra downfall + other crypto stories

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With the cryptocurrency market vastly different from what it was just over a year ago, several companies have seen an adverse impact. Bybit CEO and co-founder Ben Zhou made the announcement on Twitter. The CEO also apologized to those impacted by the cuts, stating that the downsizing was necessary. 

Difficult decisions made today, but tough times demand tough decisions. I have just announced plans to reduce our workforce as part of an ongoing reorganization of the business as we move to refocus our efforts for the deepening bear market. It’s important to ensure Bybit has the right structure and resources in place to navigate the market slowdown and is nimble enough to seize the many opportunities ahead.”

Do Kwon blames SBF 

Do Kwon has accused FTX’s founder Sam Bankman-Fried and Alameda Research of manipulating the market, leading to the collapse of Terra in May. In a thread of tweets yesterday, Do Kwon who co-founded the Terraform and sought explanations on the mystery of large transactions involving Alameda shortly before Terra’s crash.

“I think the time has come for Genesis Trading to reveal if they provided the $1B UST shortly before the crash to SBF or Alameda,” said Do Kwon. 

Do Kwon blames SBF for Terra downfall + other crypto stories

Bankruptcy documents have also shown that Alameda borrowed nine figures in Bitcoin from the now cash-beleaguered lender Voyager on TerraUSD’s depeg date. On the same dates, Alameda is said to have asked other large firms to borrow more cash, raising suspicions of a plan to short BTC to handicap Luna Foundation Guard (LFG) reserves.

According to Do Kwon, while Terra’s crash came in May, the plot to bring down the ecosystem had manifested much earlier.

Celsius to return $44 million 

A United States court has ordered the bankrupt crypto company Celsius to refund its customers with crypto assets worth $44 million. The crypto lender which announced its bankruptcy in July 2022, has been ordered by the Chief Bankruptcy Judge Martin Glenn to return millions of dollars of crypto funds to its users. 

During the ruling, Judge Glenn reportedly stated,

“I want this case to move forward. I want creditors to recover as much as they possibly can as soon as they possibly can.”

Do Kwon blames SBF for Terra downfall + other crypto stories

There has been quite some uncertainty regarding the funds held by Celsius, even after its bankruptcy filing. Several high-level executives were accused of filling their pockets instead of thinking about the community.

CZ says SBF is a fraudster 

Attempting to set the record straight, CZ, as he’s fondly called, has taken to Twitter to bare it all out. Tweeting on Tuesday, CZ said;

SBF perpetuated a narrative painting me and other people as the “bad guys”. It was critical in maintaining the fantasy that he was a “hero.” SBF is one of the greatest fraudsters in history, he is also a master manipulator when it comes to the media and key opinion leaders.”

Do Kwon blames SBF for Terra downfall + other crypto stories
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Post-FTX crash, many have implied that CZ played a role in the firm’s collapse. CZ insists that the firm‘s fall results from billions of dollars stolen from users’ funds.

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Kardashian lawsuit dropped 

A federal judge has dismissed a class action lawsuit against celebrities, including Kim Kardashian, for promoting the cryptocurrency EthereumMax. Recall that earlier this year, investors filed a lawsuit against the cryptocurrency’s founders as well as celebrities that had endorsed it. In addition to Kardashian, these celebrities included boxer Floyd Mayweather and former Boston Celtics star Paul Pierce. 

The suit claimed that promotions from these celebrities had fooled investors into purchasing the crypto at an inflated price. It also accused the defendants of engaging in a conspiracy to artificially inflate the cryptocurrency’s value.

After some earlier consideration, Judge Michael Fitzgerald of the Central District of California decided to throw the case out. He explained that the plaintiffs’ allegations ultimately lacked sufficient backing, considering the higher standards for claims of fraud. 

This is all from us this week. See you same time next week!


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