According to Foresight News, Andalusia Labs, the company behind the DeFi protocol Karak, has been accused by dozens of DeFi users and members of the Terra Classic community of stealing 200 million USTC tokens from the Terra ecosystem. This alleged theft occurred several months after the collapse of the Terra ecosystem in 2022, with the stolen tokens valued at approximately $7 million at the time.
In response to the alleged theft, the Terra Classic community voted to reclaim funds used to provide insurance for UST through Ozone. This effort resulted in the recovery of 800 million USTC tokens controlled by the Terra community's multi-signature wallet. However, Karak has responded to these allegations by stating that the tokens were 'granted' by the Terra Foundation and did not involve user funds. As such, they have refused to acknowledge the governance proposal demanding their return.