🧵👇 A compilation of why I believe Do Kwon is, at some level, personally responsible for the UST machine and owes something to people who lost millions in savings.

Not all the blame falls on him but these factors should be factored in ethically, morally, and legally. 🧵👇

1. Basis Cash

Basis Cash was an algorithmic stablecoin very similar to UST that failed due to the death spiral problem. In interviews, Do spoke about Basis Cash as if it was someone else's project. Disclosure to investors that your team's model has collapsed once before matters.

2. Intimate knowledge of the mechanics

"Do Kwon understood exactly why what he built would someday collapse. And then misled people into financial ruin." - @scott_lew_is

Dazzling displays of confidence in a system he knew to be fatally flawed led the layman astray.

3. Speed of personal cashouts

Throughout the last few months, Do cashed out hundreds of millions for "TFL operating expenses". Much of this went to his personal coffer. He encouraged Degenbox to bolster liquidity for the purpose of getting hard cash from LUNA and a little UST.

4. A stabilizing destabilizing BTC reserve

Do made the non-malicious but gravely incompetent move to pull out 3 billion dollars from the LUNA/UST machine into hard money all at once. This reduced liquidity and likely exacerbated the domino effect when everything toppled down.

Here's an inside glean into company culture at TFL from my interview with Hyungsuk Kang, an ex-TFL employee who left in 2020. "Do Kwon is a disgrace to the blockchain industry. I tried to stop him from initiating these despicable schemes, but nobody else stood up to him." (1/4)

"Do was TFL and TFL was Do. I tried to make people listen, but they were blinded by greed. They told me - 'if you obey him blindly, you will be greatly rewarded.' This disgusted me to the core. I had to leave - I couldn't do it. I had to do what was right." (2/4)

"People of Do's type and nature are brimming with conceit. They think they're royalty. These people are truly worse than the North Koreans - their ego and lack of accountability is boundless. The company culture was abhorrent on multiple levels. They belong in Hell." (3/4)

Hyungsuk Kang is currently working with Korean prosecutors to provide evidence and testimony to help their case against TFL and the damage they have done to Korean society. I have been invited to assist with these efforts and hope to work hand-in-hand with them soon. (4/4)