Terra Crypto Exec dissolved Korean HQ before collapse

Person holding a phone with the Terra symbol and the words Terra Luna

picture: Colleague (stock struggle)

South Korean Supreme Court documents show that just one week before the price of TerraUSD and its friend Luna’s currency collapsed completely, founder Do Kwon and other executives decided to shut down their South Korean headquarters.

The timing of the Terra blockchain’s price crash compared to this latest revelation and the timing of major investors withdrawing their funds add further pressure on Terra’s managers to explain what happened to a supposedly “stable” stablecoin.

South Korean online company Digital Today reported that Terraform Labs Korea decided to dissolve its Busan headquarters and Seoul branch on April 30 during a shareholder meeting, according to documents from South Korea’s Supreme Court Registry Office. These same documents are shared on this reddit , although Gizmodo was unable to independently verify the documents. The headquarters was reportedly dissolved on May 4, while the Seoul branch was canceled the next day. At the same weekend, Terra is starting to see fluctuations in its priceresulting in a complete crash.

The The New York Times On Wednesday, I reported that many large money investors in the Terra ecosystem managed to exit the company in the months leading up to the big crash, while many smaller retail investors and traders in Terra and Luna lost significant time. Currency users are reported to have said Millions of dollars lost in the meltdownwhen the algorithmically engineered stablecoin Terra lost its 1-to-1 peg to the US dollar, causing a cascading effect as both Terra and Luna fell in price.

small investors you weren’t happy. Even someone said Back At Kwon’s home in South Korea, he repeatedly asked his wife, “Is your husband home?” before escaping. Weeks after the collapse, the non-profit Luna Foundation Guard revealed it Billions of dollars spent worth of bitcoins from its reserves in an attempt to stabilize Terra’s collapse, but the effort ultimately failed.

Korea Times On Friday, it reported that Korean prosecutors are now considering the fraud charges against Kun. Not only that but international observers They are considering taking cryptocurrencies to regulate what has long been marketed as “decentralized finance.”

Meanwhile, the Luna Foundation hasn’t heard a peep from Kwon in the weeks since its collapse, said LFG board advisor Jonathan Karas. Take Crunch. The source further said that TerraUST is “largely dead”.

Kwon had raised $200 million from investment companies Over the years since Terraform Labs was established in 2018. The company is set up in Singapore, but South Korean-born Kwon has helped run the business in his home country with Terraform Labs Korea headquarters in Busan in June 2019. Kwon has been flying solo at the helm of his company. Since Shin Hoon Sung – who joined the company in 2019 as co-founder – resigned in 2020.

Meanwhile, Kwon is already heralding a new kind of…Terra 2.0and rename the old Terra and Luna as “Classic”, although both pieces are traded practically nothing at the time of reporting. The governance proposal, which members of the Terra community can vote on, would bypass the failed algorithmic stablecoin, effectively replacing it with Luna on a new Terra blockchain. According to Kwon, new Luna coins will be dropped for classic users. In his plan to rise routeKwon stated that Terra’s tying failure is “Terra’s breakthrough DAO moment – an opportunity to rise again from the ashes.”

So what is new about this planned launch compared to many cryptocurrency options? Other than maintaining Terra’s existing infrastructure, not so much.

Kwon’s original tweet said it was backed by 15 “Earth Builders,” while a handful of tagged Kwon crypto exchanges said they were all for the move. after preliminary survey Where the vast majority of users were against the split, more He seems to be signing off on the idea.

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