The Terra Luna Classic (LUNC) community has raised serious allegations against Karak Network, a blockchain infrastructure firm backed by Coinbase and Pantera Capital. Community members claim that Karak Network co-founder Raouf Ben-Har has misappropriated 200 million USTC, a significant sum in the realm of cryptocurrency. These accusations have sparked considerable debate and concern within the community, which is now seeking the return of the missing funds.
The controversy was reignited by RedlineDrifter, a prominent developer within the Terra Luna Classic community. RedlineDrifter alleges that the 200 million USTC, now valued at approximately $8 million, was never returned to the community by Karak Network. The claims trace back to Ben-Har’s previous venture, Risk Harbor, which has since rebranded to Andalusia Labs. According to RedlineDrifter, the Risk Harbor team used an administrative function to withdraw the 200 million UST (now USTC) before transitioning to their new branding.
The community’s efforts to recover these funds have been substantial. Members have made significant strides in reducing the circulating supply of Terra assets, having removed 93 million LUNC and 87 million USTC from the Terra Shuttle Bridge (BSC) contract. This move was part of a broader strategy to stabilize and enhance the value of the remaining tokens.
The issue gained further traction during a BNB Chain X space event, which featured representatives from Karak Network, Lista DAO, and Listapie. Terra Luna Classic community members used the platform to question Karak Network about the missing 200 million USTC. In response, Victor Cheng, Chief Strategy Officer (CSO) of Karak Network, denied any wrongdoing. “No user funds were ever touched. The foundation sold UST that the Terra Foundation minted and provided (which eventually dissolved) for pennies on the dollar after riding it down to zero. This will carry forward to Karak. Simple as that,” Cheng stated.
Despite these assurances, the Terra Luna Classic community remains skeptical and continues to demand transparency and the return of the funds. The broader implications of this controversy have also impacted the market performance of USTC and LUNC.
Currently, USTC is trading at $0.01808, down 1% over the past 24 hours, with a trading volume that has decreased by 32%. Similarly, LUNC has seen a modest price increase of 1% in the same period, now trading at $0.00008329. However, its trading volume has also decreased by 23%. These fluctuations indicate a mixed sentiment among traders, influenced by the ongoing controversy and the community’s recovery efforts.
Looking ahead, the community is optimistic about a potential price recovery. The upcoming Binance LUNC burns and the implementation of the Tax2Gas initiative in July are expected to positively influence the market. These measures are part of a broader strategy to restore confidence and stability within the Terra Luna Classic ecosystem.
As the community continues to seek answers and restitution, the unfolding developments will be closely monitored by both investors and industry observers. The resolution of this issue will likely have significant repercussions for the Terra Luna Classic project and the broader cryptocurrency market.