Insider Testimony Reveals Troubles of Failed Terra Project
An insider from the Terra project has recently come forward to testify against the co-founders of the failed network in South Korea. The insider, referred to as “Lee,” was responsible for developing the technology behind the project. According to Lee’s testimony, they were aware from the beginning that there were legal issues with the proposed payments network using Terra Luna and ChaiPay.
Lee further revealed that they had learned about these problems directly from Do Kwon, the founder of Terraform Labs. Despite knowing that coin payments using the Terra network were not feasible and could not be properly regulated, the project continued to be developed. This eventually led to significant losses for investors when the network collapsed in 2022.
Defense Challenges Testimony
In response to Lee’s testimony, Shin Hyun-Seong’s lawyers argued that their client did not know it would be impossible to use the Terra network for payments. They claimed that none of the co-founders ever expressed this knowledge or belief.
Shin Hyun-Seong, also known as Daniel Shin, is currently facing trial for various charges, including violating the Capital Markets Act and embezzlement. Do Kwon, on the other hand, is in jail in Montenegro and extradition requests have been denied so far. However, Han Chan-joon, Kwon’s finance officer, has been extradited to South Korea.
Hot Take: Legal Battles Continue for Terra Founders
The legal battles for Terra founders Do Kwon and Shin Hyun-Seong are far from over. With an insider testifying against them, alleging that they were aware of the project’s troubles from the start, their defense faces challenges. If these allegations hold true, it could have serious implications for the founders and the future of Terra. As the legal proceedings unfold, the fate of Kwon and Shin hangs in the balance, while investors who suffered losses due to the network’s collapse hope for justice.
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