Modern Economic Nonsense — A journey of money laundering

xuanling11
Coinmonks
Published in
2 min readJun 10, 2022

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When UST collapsed, the founder Do Kwon promised the community to revitalize Terra through a new proposal of Terra 2.0 that serves the community solely. But the project looks more and more like a money laundering 💸.

What has been gone wrong 🤔?

Money laundering 1️⃣0⃣1️⃣

There are three stages of money laundering:

1️⃣ Placement

You received cash from illicit activities and spread the total amount into small individual amounts to convert into cash or any legal investments.

2️⃣ Layering

Once the transaction has been completed, the funds are blended into the legitimate funds and become a part of the financial system.

3️⃣ Integration

Once multiple transactions have been completed, the funds integrate into the financial system without a possible traceable footprint. It marks the end of the laundering process.

Terra 2.0

Do Kwon is playing a game called “where is my money.”

He started with the placement, in which he rugged pull users before the market crashed.

Then he follows the layering in which he puts money blended with Bitcoin and tries to revive his new money through Terra 2.0.

He knew that people would sell Terra 2.0 once they received airdrops, so he was ready to sell while convincing new buyers to purchase at the high price level. It is the so-called “buy high and sell low.”

In the end, he and his team probably recovered from the loss, while many other users lost more than they could possibly be.

The problem of Terra 2.0

The same problem exists in Terra 1.0, no transparency and no decentralization to prohibit founders from making unilateral decisions to fix “the problem.”

⚠️ The founder is “the problem.”

And he was doing money laundering.

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