According to the court documents reveal, Terraform Labs Korea Corporation could be dissolved days before the LUNA/UST collapse. So Do Kwon knew what was going to happen to LUNA?
In case you forgot what happened two weeks ago, here is the Terra crypto platform collapse case in a nutshell.
Somebody withdrew almost $3 billion in UST stablecoins during the harsh crypto market decrease. This caused a so-called death spiral and insane devaluation of the UST stablecoin price.
After UST lost the dollar peg, its maternal token LUNA fell from $85+ to almost 0. Tens of billions of holders’ USD in UST/LUNA just vanished in a few days.
But the new data about the crash keeps emerging. Some point to an theory that Do Kwon knew what was going to happen to LUNA and Terra.
Do Kwon might knew everything about LUNA fate
Lately, South Korean news outlet Digital Today published the information reportedly obtained from the country’s Supreme Court Registry Office.
Revealed documents say that Terraform Labs founder Do Kwon successfully instigated the liquidation of two branches and an entire company.
That means Do Kwon could liquidate the whole Terraform Labs Korea Corporation just days before the initial collapse happened.
Both the Busan headquarters and the Seoul offices were slated for dissolution during a general shareholders meeting on April 30. With their demise being actioned on May 4 and May 6, respectively, the documents tell.
The decision to liquidate Terra offices right at this time is quite suspicious, as the company leaders might knew about the coming crisis. The financial obliteration event of the Terra (LUNA) token and its UST stablecoin started in the early hours of May 10.
Left Terra community is currently considering the Do Kwon’s revival plan, based upon a new fork with issuing Terra Classic or LUNC tokens.
In court testimony and lawyers resign
Last week a rep from the nation’s ruling People Power Party Yun Chang-hyun requested a parliamentary hearing on the Terra platform case.
Chang-hyun wants the Korean parliament to ask Kwon about everything that transpired with the UST collapse. And also about the ‘actions undertaken by some of the largest local crypto exchanges’.
The politician also outlined the damage this collapse caused to local investors. But it’s still unknown when Do Kwon could appear in front of the country’s parliament. He is to testify about Terra and Luna.
Besides the Terra founder, Chang-hyun wants Coinone, Korbit, Upbit, and Bithumb exchanges’ founders to testify to authorities as well. These crypto platforms halted UST trading on May 10-11.
Moreover, the company lawyers reportedly resigned right after the UST/LUNA crash. According to the sources in the media, the third-party expert runs legal matters in Terra now.
The LinkedIn profiles of Terraform Labs’ general counsel Marc Goldich, chief corporate counsel Lawrence Florio, and chief litigation and regulatory counsel Noah Axler show that all three left the company in May.