👋 Do you want to work with us? CryptoSlate is hiring for a handful of positions!

@FatManTerra tweeted details of a community litigation fund that aims to compensate victims of the Terra scandal and clarified that it would not promote or share the link due to “red flags”.

Earlier this month, Terra’s UST stablecoin lost its fixed price of $1, causing a collapse in the price of the supporting LUNA token. $60 billion went missing, leaving victims devastated as a result.

Initial analysis of the situation blamed the fragile algorithmic linking mechanism. But accusations have since surfaced that it was foul play.

The social impact of the scandal has been catastrophic. Victims report mental health problems, and many have even contemplated self-harm and suicide.

Terra litigation fund details

In an attempt to compensate the victims, @FatManTerra spoke of a community litigation fund touted as “the perfect solution,” a cheaper option, and “out of the box.”

The fund will take the form of a Decentralized Autonomous Organization (DAO). Supporters of the cause can contribute and, as with DAOs, gain voting rights in the decision-making process.

But considering the lack of regulation around cryptocurrencies, it is not clear if this DAO can deliver on its promise. Or even if a blockchain solution is the right decision in these circumstances.

However, @FatManTerra said that the funds would be kept in a multigrade wallet which requires the approval of three people to authorize transactions.

@FatManTerra he also mentioned bringing in a public figure, a lawyer, so that victims and supporters can feel confident that the fund is legitimate.

Wait, @FatManTerra doesn’t sell on the DAO?

@FatManTerra’s tweet storm takes a turn as he expresses doubts about the DAO.

In particular, it was learned that the DAO would redistribute half of the donations to the community. @FatManTerra he questions why 100% does not go back to the donors and why the DAO has “this level of centralization”.

Also, why would donors help support victims and redistribute funds to them? Surely a donation is given to promote a cause without expecting a return.

@FatManTerra said he was pressured to promote the DAO but said he told them he needed time and refused to budge and was glad he didn’t because “there were too many red flags”.

Despite this seemingly shady attempt to cash in on Terra’s crisis, @FatManTerra said the exposure he’s been receiving has led him to “high profile law firms” and “litigation funders” by contacting you.

Three law firms that you have been in contact with have filed $15 million and agreed to work on a contingency fee basis, which means a fixed percentage rate payable only if the case wins.

Negotiations are currently underway to obtain “the best possible deal” for the victims.

Posted in: Terra, Culture

Obtain a Edge in the Cryptomarket 👇

Become a member of CryptoSlate Edge and get access to our exclusive Discord community, plus exclusive content and analysis.

chain analysis

Pricing Snapshots

More context

Join now for $19/month Explore all the benefits



This post Details of Terra’s community litigation fund raise ‘red flags’

was published first on https://cryptoslate.com/terra-community-litigation-funds-details-raise-red-flags/

Author

Write A Comment