About a year earlier, on March 14, 2022, cryptocurrency trader GiganticRebirth (GCR) guest the then co-founder of Terraform Labs CEO Do Kwon on a $10 million bet that the price of Terra Luna (LUNC) would be lower than its then price of $92.4 per token a year later. The blockchain executive accepted the offer, the second in the series after the day before, when cryptocurrency trader Algod offered a $1 million bet that LUNC would be less than $88 per token on March 13, 2023, which Kwon also accepted, resulting in two bets worth $11 million and a $22 cash prize millions.
The funds, which totaled $22 million from all participants, were held on escrow by blockchain personality Cobie on his Ethereum ADDRESS. Cobie claimed at the time that a hot wallet was given to participants "on my mobile phone while I was in the middle of Africa, when I woke up there was $22 million deposited."
"I didn't want 22 m in a mobile tent while living in a tent among lmao lions."
As said by Cobie and backed by blockchain data, the blockchain personality paid off hot wallet bets in April 2022, shortly after the $40 billion LUNC and the accompanying Terra USD algorithmic stablecoin (USTC) ecosystem imploded, with LUNC trading at fractional decimal values โโclose to zero. However, Cobie also stated in December 2022:
"I actually called the bet shortly after Luna hit 0, and then bought enough Luna to cover me in case it somehow got back to $88. But I lost my hedge (held at FTX), so if Luna hits $88 in the next 3 months I'm screwed"
As the bet was active until mid-March 2023, Cobie was asked to hold collateral despite LUNC's collapse, as funds were paid out early and conditions could differ upon settlement. At press time, LUNC is currently trading at $0.000124 per token.
Last November 2022, cryptocurrency exchange FTX, then the world's third largest by volume, filed for bankruptcy on allegations of misappropriating user funds, freezing the deposits of more than 1 million creditors. On April 4, 2022, Cobie transferred the prize money and principal, worth $22 million in stablecoins, to winners GCR and Algod via FTX. The subsequent flow of funds is unclear.
On September 26, 2022, Interpol issued a red notice arrest warrant for Do Kwon at the request of South Korean prosecutors on fraud allegations related to the Terra Luna collapse. The former blockchain executive is reportedly hiding out in Serbia, which does not have an extradition deal with South Korea. In addition to losing $11 million from the bets, the Federal Bureau of Investigation and the US Department of Justice reportedly began investigating the Terra Luna collapse on March 14, 2023. A month earlier, the Securities and Exchange Commission of the US accused Terraform Labs and former CEO Do Kwon with โripping off investors in crypto schemes.โ
An anniversary of my $1 million dollar bet with @stablekwon
although in retrospect it's easy to say that Luna would topple as you can see from the comments they ridiculed me as redacted
the masses are often wrong, it was a great lesson https://t.co/Elp9ZMGBTc
โ Algod (@AlgodTrading) March 14, 2023
Post navigation
