Former Terra Development Team Leader Testifies Against Do Kwon
On February 5, a Korean newspaper reported that a former leader of the Terra development team came forward with testimony challenging Terra founder Do Kwon. The witness, known as “Lee,” testified against Do Kwon and Terraform Labs co-founder Shin Hyun-seung.
Lee’s Testimony on Terra’s Co-Founders
During his testimony, Lee revealed that he was aware of the legal difficulties facing Terra, which he learned through discussions with Do Kwon. He also emphasized the operational structure of Terra and its goal to establish LUNA as a functional currency through the “ChaiPay” payment system.
Shin’s defense team contested Lee’s testimony and pointed out discrepancies between his assertions and the presented facts.
The Collapse of Do Kwon’s TerraUSD and LUNA
Terraform Labs, the parent company of TerraUSD and LUNA, experienced a collapse in May 2022, resulting in a significant reduction in market capitalization. This collapse also contributed to losses in the broader crypto market.
Terraform Labs has initiated bankruptcy protection proceedings after being charged with violating U.S. laws by not registering LUNA and MIR as securities. Do Kwon is facing multibillion-dollar fraud charges in the U.S.
Hot Take: Former Terra Development Team Leader Testifies Against Do Kwon
A former leader of the Terra development team has testified against Terra founder Do Kwon, adding further legal challenges to the troubled project. The testimony from this witness, known as “Lee,” raises questions about the awareness of regulatory obstacles within Terra. It also highlights discrepancies between Lee’s claims and the defense presented by co-founder Shin Hyun-seung.
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