TechFlow news, according to DL News, community members of Terra Classic have accused Andalusia Labs—the team behind restaking protocol Karak—of stealing 200 million USTC tokens from the Terra ecosystem several months after the collapse of Terra in 2022, when the tokens were worth approximately $7 million. A Terra Classic governance vote demanded the return of funds used to insure UST via Ozone, recovering 800 million USTC held under the control of the Terra community multisig wallet.
Karak denies taking any tokens, stating that the tokens were "granted" by the Terra Foundation, did not involve user funds, and refuses to recognize the proposal calling for their return. Andalusia Labs, the parent company behind Karak, raised $48 million at a valuation of over $1 billion in December last year.
