Do Kwon Invited to Court
It turned out that Terraform Labs, which was responsible for the LUNA and UST collapse, closed its South Korean company 9 days before the collapse. Terraform Labs CEO DO Kwon has been invited to testify before the South Korean National Assembly. The government, on the other hand, called in a special financial investigative team known as the ‘Yeouido Angels of Death’ after 2 years and 4 months to investigate Terraform Labs and Do Kwon.
The world-shaking financial crisis Luna’s founder and CEO, Do Kwon, is certain to go to court. It looks like we need to be ready for the news that will mess things up in the coming days.
Arrows pointing to Terraform Labs Founder Do Kwon
The collapse created by Terraform Labs, of which South Korean Do Kwon is the Founder and CEO, in the cryptocurrency market led to an investigation in the country. Preliminary investigations have raised suspicions against Do Kwon.
On May 9, TerraUSD (UST), the stablecoin of the Terra network created by Terraform Labs, failed to hold its target price of $1. LUNA, the native cryptocurrency of the Terra network, also crashed on it. In total, the market value of 40 billion dollars evaporated in 1 week. There is no hope left of the Terra web being saved.
When the UST first fell below $0.70, Do Kwon LUNA Foundation stated that they were trying to fix the money back to the $1 value with its reserves. Throughout the process, Do Kwon emphasized that the depreciation of the UST was due to an organized attack. UST never returned to its $1 value, and investors’ money ran out.
The latest documents in South Korea showed that before the collapse, Singapore-based Terraform Labs decided to close its company in South Korea on April 30. According to the news that the South Korean press based on official documents, Terraform Labs Korea decided to close its headquarters in Busan and its office in Seoul at the shareholders’ meeting held on that date. The decision was implemented with the signature of Do Kwon.
Do Kwon CLOSED THE COMPANY ON APRIL 30
An estimated 280,000 investors in South Korea are estimated to have suffered losses from the collapse in UST and LUNA. Therefore, the crisis has become the most important agenda item in politics in the country. Chinese National Assembly Political Affairs Committee Member Yoon Chang-Hyeon invited Do Kwon to the assembly to testify to the committee.
With the news that Terraform Labs has decided to close its company in South Korea on April 30, those hopeful investors of Luna are moving towards pessimism again with this news. The fact that Terra Luna lost millions of dollars to its investors overnight and the statements made by Do Kwon did not satisfy the investors enough caused things to go badly.
Bad news for Luna’s market situation, as China National Assembly Political Affairs Committee Member Yoon Chang-Hyeon has invited Do Kwon to the parliament to testify to the committee.
In addition, the South Korean Financial Services Commission also examined transactions made on cryptocurrency exchanges at the time of the collapse.
A Special Team Is Ready For Luna
South Korean media reported that the Minister of Justice Han Dong-hoon, who took office three days ago, is closely interested in the Terra issue. In order to investigate the Terraform Labs scandal, a research unit called ‘Yeouido Angels of Death’, known for its achievements in the field of property investigation, was called back to duty after 2 years and 4 months. Consisting of 48 people, 7 of whom are prosecutors, this team takes its name from the successful investigations and sentences it has given in the Yeouido district, the financial center of Seoul. Team members include Financial Services Commission and Financial Supervisory Authority officials.
Special investigative units such as the Yeouido Angels of Death were shelved under the law reform 2 years ago. However, the extent of the crisis led to a return to this practice.
Finally, two days ago, it was revealed that lawyers Marc Goldich, Lawrence Florio and Noah Axler, who were in the legal team of Terraform Labs, left the company. There was no explanation from the company regarding the resignations in question. The resignations were learned when lawyers updated their LinkedIn profiles. These resignations, which came at a time when investors and officials in South Korea increased the legal pressure, dealt another blow to Do Kwon.