๐๐๐ Former Terra developer testifies against Do Kwon at South Korean court: report
During a witness questioning at the third trial involving eight former members of Terraform Labs, including co-founders Kwon Do-hyeong and Shin Hyun-seung, a former developer named Lee testified on Monday. Lee disclosed that Kwon and Shin had promoted #TerraUSD #stablecoin as a potential payment option to investors, despite being aware of local regulations prohibiting such offerings, according to local media reports.
The testimony emerged amidst ongoing legal proceedings following the collapse of the Terra-Luna crypto project in 2022. South Korean prosecutors have leveled accusations against Kwon, Shin, and Terraform Labs, alleging fraud in falsely promoting Terra's USD-pegged stablecoin as a viable payment measure, among other charges.
Shin, in defense, argued that regulators hadn't clearly defined the stance on crypto usage for payments. He also maintained that he had severed ties with Terra two years prior to the project's collapse, denying involvement in the debacle.
Lee, whose full name wasn't disclosed in adherence to South Korea's privacy regulations, reportedly testified that Kwon had acknowledged South Korean financial regulations prevented TerraUSD from being utilized as a payment method, indicating the executives' awareness of the stablecoin's limitations. In response, Shin's defense team disputed the accuracy of such testimony.
In a parallel development, former Terra CFO Han Chang-joon, a close associate of Kwon, was extradited from Montenegro to South Korea on Monday. He is expected to arrive in Seoul on Tuesday afternoon and face investigation by local prosecutors, as reported by Aju Business Daily.
In March of the previous year, Han and Kwon were arrested at a Montenegrin airport for attempting to travel with forged documents. Kwon remains in custody in Montenegro as local authorities deliberate on whether to extradite him to South Korea or the U.S.
Source - theblock.co
