The new report says Terra platform founder Do Kwon could testify to South Korean authorities about Terra and Luna case. Moreover, Terraform Labs’ lawyers allegedly resigned after the collapse.
On Wednesday 18 May UST stablecoin price dropped to $0,095. This is the lowest token value point since the beginning of its crash on May 9.
The drop was followed by a new report that says the Terra platform founder Do Kwon could testify to Korean authorities. Kwon would be asked about what happened to Terra and Luna.
In case of being found guilty, Kwon could give up his proposed plan to restore the network with a hard fork and a new token LUNC (Terra Classic).
But Kwon’s testimony is still under debate.
What do Korean politics say about Do Kwon and Terra and Luna case?
According to the local Korean report, 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 TerraUSD (UST), its collapse, and 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 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. But this isn’t how Do Kwon saga with Terra and Luna ends. This isn’t over.
Are lawyers running from the sinking ship?
Another news that can throw more oil on that bonfire is Terraform Labs’ lawyers resigning.
According to The Block sources, the company lawyers resigned right after the UST/LUNA crash. Reportedly, the third-party expert runs legal matters in Terra now. So basically the lawyers abandoned Do Kwon with Terra and Luna situation.
“The past week has been challenging for Terraform Labs, and a small number of team members resigned in recent days,” The Block cites a spokesperson for the company. “The vast majority of team members remain steadfastly committed to carrying out the project’s mission. Terra is more than UST, with an incredibly passionate community and a clear vision of how to rebuild. Our focus is now on executing our plan to revive the Terra ecosystem.”
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.
Twitter’s community speculates that the possible lawyers’ dismissal reason lies in their concerns with stable salary payments. Or they just can’t handle all the company’s issues.
Anyway, the Terra future is in darkness now.