Do Kwon Allegedly Set Up Mirror Protocol To Defraud Individual Investors

Terra analyst and source of several whistleblower leaks, FatManTerra, has alleged that Mirror Protocol is a:

“Farce designed to enrich Do Kwon/VCs while manipulating governance and screwing over retail.”

FatManTerra identified a wallet via Etherscan that deployed the Mirror Protocol yield farming smart contracts. The wallet created the smart contract 0xdb27, which FatManTerra alleges to be a part of the Terra wormhole infrastructure and a liquidity pool for Mirror Protocol.

The contract certainly appears to be acting as an LP pool for some protocol, but at this time can neither confirm nor deny that it belongs to Mirror Protocol.

FatManTerra highlights that this wallet:

“Owned most of the Mirror LPs on Ethereum. They thus farmed most of the MIR rewards, which would allow them to have a disproportionate say in governance decisions.”

The wallet in question is listed as one of the top 20 MIR wallets, according to CoinMarketCap. The data matches with FatManTerra’s next accusation.

“I have found evidence that this wallet and related wallets try very hard to make it look like MIR governance is not majority-controlled by a single entity – they do so by splitting up MIR between several fresh anonymous wallets.”

The MIR held in the wallets identified in the Twitter thread is apparently all staked, giving them excessive voting power in the MIR governance when combined.

FatManTerra then identifies several wallets that interacted by bridging tokens across the wormhole, transferring mAssets from Ethereum to Terra, purchasing $750 million tranches of UST, and spreading MIR across multiple wallets similarly to the previously described wallets.

Again, FatManTerra alleges that someone with high levels of capital and access to LP contracts was spreading MIR tokens across multiple wallets to make the protocol appear more decentralized.

The accusation is damaging to the reputation of Mirror Protocol

However, the next part of the thread changes the direction of his accusations.

FatManTerra claims that one of the wallets he’s been following delivered tokens to a DAO account where Do Kwon serves as an official advisor. He goes on to explain how MIR money from this labyrinth of wallets were transferred to Binance and KuCoin, where they were sold on the open market.

The accusations may be traced by looking at the data on the blockchain, which he claims:

“Confirms much of what the current Jump employee told me.”

“I urge that individuals analyze the evidence and develop their own judgments wherever possible,” FatManTerra finishes the post. The thread contains links to each of the wallets, and the beauty of blockchain is that the information is open to the public.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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