According to Wu, Terra Classic community members accused Andalusia Labs, the company behind the restaking protocol Karak, of stealing 200 million USTC tokens, worth about $7 million at the time, from the Terra ecosystem a few months after the Terra ecosystem collapsed in 2022. Terra Classic voted to return the funds used to insure UST through Ozone, recovering 800 million of the USTC controlled by the Terra community multi-signature wallet.
Karak responded that the tokens were "granted" by the Terra Foundation and no user funds were involved, and did not recognize the proposal to return them. Andalusia Labs, the parent company behind Karak, completed a $48 million financing in December last year at a valuation of more than $1 billion.
