One year after Do Kwon placed a $11 million bet on LUNC, he requested for the funds to be paid out, but the hedge was still stuck on FTX.

Leora Heathcote

Hot

4 mins

Mar 15, 2023 23:49

Do Kwon, the ex partner of Terra Luna who was on the wrong side of a wager which led to him losing $11 million, is currently being tracked down by Interpol and is believed to be hiding somewhere in Serbia.

In a remarkable move, cryptocurrency trader GiganticRebirth (GCR) has offered an unprecedented $10 million bet to the then co-founder and CEO of Terraform Labs, Do Kwon, that the price of Terra Luna (LUNC) would be lower than its then price of $92.4 per token a year later. On Mar. 13, 2023, a second bet was made by cryptocurrency trader Algod who offered a $1 million bet that LUNC would be lower than $88 per token, to which Kwon also accepted. These two impressive wagers, worth a combined $11 million, have created a prize money pool of an incredible $22 million.

Cobie, a well-known blockchain personality, held a whopping $22 million in escrow on their Ethereum address that was contributed by an undisclosed number of participants. In a statement, Cobie revealed that the funds were stored in a hot wallet on their mobile phone while they were in the middle of Africa. According to Cobie, "when I woke up there was $22 million deposited." This is yet another example of the power of blockchain technology and its potential to revolutionize finance.

"i didn't want 22m on a mobile tent while I was living in a tent amongst lions lmao."

In April 2022, Cobie, a blockchain personality, made good on bets made from their hot wallet, shortly after the $40 billion LUNC and its algorithmic stablecoin Terra USD (USTC) ecosystem crashed and LUNC was trading at almost zero. Fast forward to December 2022, Cobie provided an update on the situation and revealed that their bets had paid off despite the crash of the ecosystem. This news came as a relief for many in the blockchain community, particularly those who had placed bets with Cobie's hot wallet.

"I actually paid out the bet shortly after Luna went to 0, and then bought enough Luna to hedge in case it somehow went back to $88. But I lost my hedge (custodied in FTX) so if Luna goes to $88 in the next 3 months I am fucked"

Cobie, a digital asset trader, recently made a bet that would remain active until mid-March of 2023. The bet involved a crypto token called LUNC, and as part of the conditions of the bet, Cobie was required to hold collateral. Unfortunately, LUNC had already collapsed by the time the funds were paid out, meaning the conditions of the settlement date could differ from the original arrangement. Currently, LUNC is trading at an unbelievably low price of $0.000124 per token.

On April 4, 2022, Cobie transferred $22 million worth of stablecoins to cryptocurrency exchange FTX, despite the company filing for bankruptcy eight months prior. This sent shockwaves through the crypto community, as the third-largest exchange in the world was previously accused of misappropriating users' funds. As a result, the deposits of over one million creditors were left frozen. The money was intended for winners GCR and Algod, yet the subsequent flow of funds is unclear. The incident has raised questions about the security of funds stored on exchanges, and the crypto community awaits further developments.

On Wednesday, September 26, 2022, Interpol issued a red notice arrest warrant for Do Kwon, former blockchain executive and CEO of Terraform Labs. The warrant was issued at the request of South Korean prosecutors, who accused Kwon of committing fraud in relation to the collapse of Terra Luna. Kwon is believed to be hiding in Serbia, a country which does not possess an extradition agreement with South Korea. This has left investors in the lurch: they are reportedly out $11 million from their investments in the project. The US Federal Bureau of Investigation and Department of Justice began probing Terra Luna’s collapse on March 14, 2023, one month after the U.S.