A Former Terra Team Leader Testifies Against Do Kwon
A witness known as “Lee,” a former leader of the Terra development team, testified against Terra founder Do Kwon and Terraform Labs co-founder Shin Hyun-seung in a case at the Seoul Southern District Court. Lee acknowledged being aware of the legal challenges facing Terra, which were discussed with Do Kwon. He also highlighted the operational framework of Terra, including the ChaiPay payment system and the potential profits based on the value increase of the LUNA token.
Shin’s defense team disputed the accuracy of Lee’s statements and questioned whether Kwon and Shin were aware of the impossibility of Terra payments.
The Alleged Conspiracy and Bankruptcy Protection
The prosecution alleges that there was a conspiracy involving Shin, Terra team members, Do Kwon, and others to unlawfully promote the project and seek profits through deceptive practices. Eight individuals affiliated with Terra, including Shin, are suspected of violating South Korea’s Capital Markets Act.
Meanwhile, Terraform Labs, based in Singapore, filed for bankruptcy protection to pursue an appeal against the U.S. Securities and Exchange Commission (SEC). The SEC ruled that Terraform Labs and Do Kwon violated U.S. law by failing to register LUNA and MIR as securities.
Hot Take: Terra Faces Legal Challenges Amidst Testimony from Former Team Leader
A former leader of the Terra development team has testified against Terra founder Do Kwon and co-founder Shin Hyun-seung in a court case. The witness confirmed being aware of legal obstacles facing Terra and shed light on its operational framework. However, the defense team has challenged the accuracy of these statements. The prosecution alleges a conspiracy involving several individuals affiliated with Terra to unlawfully promote the project for personal gains. In a separate development, Terraform Labs has filed for bankruptcy protection to pursue an appeal against the SEC after being accused of violating U.S. law. These legal challenges pose significant obstacles for Terra and its future prospects.
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