Terraform Labs (TFL), the firm behind the defunct algorithmic stablecoin TerraUST (USTC), and its co-founder Do Kwon is back in the limelight again for allegedly running a smear campaign and issuing threats against one of their own community members.
It all started in the month of May with the genesis airdrop that was planned after the original ecosystem imploded in the wake of its stablecoin depeg. TFL, in a Twitter thread, claimed that Jimmy Le, a community member entrusted with Terra community funds, has refused to return funds gained during the genesis airdrop.
The thread noted that the newly minted token, now called LUNA, was airdropped to individuals holding the original native token (now called) LUNAC. However, an error with regard to CW3 multi-sig wallets resulted in individual signers of these multi-sigs receiving LUNA airdrops, which they should not have.
TFL claimed that all other multisig singers returned the accidental airdrop except for Jimmy and despite their best efforts, he is yet to cooperate with them.
5/ All Ozone and Interchain Incentives multi-sig signers have since returned 100% of the $LUNA they received in the Genesis airdrop where technically possible — except for Jimmy.
— Terra Powered by LUNA (@terra_money) January 5, 2023
Jimmy, the individual accused of not returning the accidental airdrop, responded to the TFL tweet thread on Jan. 9 and accused them of running a smear campaign against him. He said the firm has deliberately chosen to present one side of the story and has also lied about their interactions. He claimed that at no point he refused to return the accidental airdrop but wanted to make sure about the tax implications because of the tokens he had received.
He also clarified that he transferred the liquid portion of the airdrop (around $1 to 1.5 million) to the multisig TFL specified, and none of the airdropped tokens has ever been undelegated or sold. But later, he found out that the chain upgrade did not reset his vesting balances to the community pool but rather enabled the manual transfer of vesting tokens to the community pool. This made him revisit his tax concerns again.
On August 1, 2022, I discovered that the chain upgrade did not reset my vesting balances to the community pool, but rather enabled a feature that enabled manual transfer of vesting tokens to the community pool. pic.twitter.com/mlXjUQGW7N
— jimmy (@stablejim)