Terra’s official Twitter post today stated that a community member who was entrusted to manage Terra’s community funds refused to return the funds obtained from the entrustment to the community pool. According to Terra, due to an error in the genesis airdrop event when Phoenix-1 was launched in May 2022, the CW3 multi-signature wallets that hold a large number of LUNC and USTC on behalf of the community should have been blacklisted, but the individual signers of these wallets were not. Received a LUNA airdrop that they should not have received, other signers have returned LUNA to the community pool, with the exception of one community member named Jimmy. Jimmy privately re-delegates these LUNAs to the LUNCDAO project, and then entrusts these LUNAs to a new validator called "the Charity Block" to receive staking rewards.

Terra stated that it had proposed a plan to Jimmy that he could return the funds and submit them to the community for voting through the governance proposal, and Jimmy still ignored the request to return the funds to the community pool. The wrong airdropped tokens that Jimmy received at that time were 1,347,810.646 LUNA.

It is reported that Terra collapsed in May last year, and its founder Do Kwon is wanted by South Korean authorities and Interpol.