On the 23rd of May, FatMan Terra called out some big names in the crypto ecosystem. Interestingly, the CEO of FTX was mentioned along with other individuals and organizations for manipulating the market.
According to FatMan Terra’s Twitter bio, he is from Terra’s research forum and provides key updates to his 46K followers about the Terra situation. FatMan also mentioned that several individuals had contacted him in the last 48 hours, revealing some shady acts behind the scenes in the crypto space between 2021 and 2022. He added that these “whistleblowers” have insisted on not being tagged or mentioned to protect their privacy.
What Supposedly Happened Behind the Scenes?
In one of his accusations, FatMan said:
“Jump Trading publicly runs validator nodes on one of Solana’s key oracles (Pyth) and the key bridge (Wormhole). An employee from Jump has told me that they consider both Pyth and Wormhole to be multi-billion-dollar exits to dump on retail.”
Undoubtedly, this has raised many questions. Why the Jump rescue Wormhole for a whopping $320 million? FatMan believes that there was a shady backroom deal between FTX’s CEO and Jump’s CEO.
Further, FatMan accused Jump of manipulating retail traders to invest in UST. Since the crash of LUNA and UST, investors have lost more than $39 billion, and the Luna researcher and analyst see this as a case of fraudulence rather than a failed investment.
Also, FatMan mentioned that Do Kwon had a deal with Jump in 2021 and has to pay the crypto company millions in LUNA monthly. In 2021, Jump reportedly provided liquidity to backstop UST. Following this, Do Kwon has returned the favor with 1M LUNA tokens each month. While this is not illegal in itself, it seems Fatman’s anger is based on the fact that Do Kwon tried to conceal this deal from Luna investors.
Additionally, did the millions of LUNA owed by the Korean founder trigger him to increase Luna’s supply at the expense of investors? At the moment, there is no solid evidence to back that claim, but it still remains on the list of possibilities.
Meanwhile, South Korea intends to hold the nations’ exchanges responsible for the billions lost during the LUNA and UST crash.