TerraUSD
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🚀🚀🚀 #SEC Whistleblower Reveals Chai Payments App in Terra Ecosystem Didn’t Use Crypto 🚀🚀🚀
Four cryptocurrency tokens offered by Do Kwon and Terraform Labs, the company he co-founded, have been deemed unregistered securities in a recent summary judgment ruling by Judge Jed Rakoff of the U.S. Court for the Southern District of New York. The tokens in question include #TerraUSD (UST), $LUNA , wLUNA, and Mirror Protocol (MIR). Notably, the ruling dismissed the notion that Terra’s Mirror Protocol “mAssets” constituted security-based swaps.
The judgment highlighted a crucial revelation regarding the Chai payments platform, which Kwon often promoted as a real-world use case of the Terra #blockchain . The SEC presented evidence indicating that the Chai platform did not operate on the Terra blockchain as claimed. Payments were allegedly settled using traditional methods and then mirrored on the Terra blockchain through a server under Kwon’s control, according to an email from a Chai employee in May 2020.
Moreover, a whistleblower, identified as Chai’s Chief Product Officer, disclosed that a former Terraform employee who joined Chai revealed that “there’s no crypto going on within Chai.” The whistleblower claims to have confronted Kwon about Chai’s true nature in September 2021, with Kwon allegedly showing indifference.
Despite compelling evidence, Judge Rakoff acknowledged disputes of material fact, particularly concerning the credibility of whistleblowers. The defense argues that one whistleblower attempted to extort Kwon and Terra co-founder Daniel Shin after being terminated from Chai. Inconsistencies in the whistleblower’s account, including the source of information about Chai’s systems, also contribute to the disputes.
Terraform CTO Chris Amani contradicts claims, stating Chai used the blockchain. The court ruled Kwon and Terraform violated U.S. law for unregistered digital currencies. Summary judgment on SEC fraud claims denied, trial scheduled for January 29, 2024.
Source - Ruholamin Haqshanas @ruholamin-haqshanas
Website - Cryptonews
Four cryptocurrency tokens offered by Do Kwon and Terraform Labs, the company he co-founded, have been deemed unregistered securities in a recent summary judgment ruling by Judge Jed Rakoff of the U.S. Court for the Southern District of New York. The tokens in question include #TerraUSD (UST), $LUNA , wLUNA, and Mirror Protocol (MIR). Notably, the ruling dismissed the notion that Terra’s Mirror Protocol “mAssets” constituted security-based swaps.
The judgment highlighted a crucial revelation regarding the Chai payments platform, which Kwon often promoted as a real-world use case of the Terra #blockchain . The SEC presented evidence indicating that the Chai platform did not operate on the Terra blockchain as claimed. Payments were allegedly settled using traditional methods and then mirrored on the Terra blockchain through a server under Kwon’s control, according to an email from a Chai employee in May 2020.
Moreover, a whistleblower, identified as Chai’s Chief Product Officer, disclosed that a former Terraform employee who joined Chai revealed that “there’s no crypto going on within Chai.” The whistleblower claims to have confronted Kwon about Chai’s true nature in September 2021, with Kwon allegedly showing indifference.
Despite compelling evidence, Judge Rakoff acknowledged disputes of material fact, particularly concerning the credibility of whistleblowers. The defense argues that one whistleblower attempted to extort Kwon and Terra co-founder Daniel Shin after being terminated from Chai. Inconsistencies in the whistleblower’s account, including the source of information about Chai’s systems, also contribute to the disputes.
Terraform CTO Chris Amani contradicts claims, stating Chai used the blockchain. The court ruled Kwon and Terraform violated U.S. law for unregistered digital currencies. Summary judgment on SEC fraud claims denied, trial scheduled for January 29, 2024.
Source - Ruholamin Haqshanas @ruholamin-haqshanas
Website - Cryptonews
South Korean Authorities Raid Terra Co-Founder’s Home
#SouthKorean prosecutors raided the home of Daniel Shin, co-founder of Terraform Labs, as part of an investigation into illegal activity linked to the collapse of the #TerraUSD stablecoin. Several raids on crypto exchanges and offices were conducted, including Shin’s payment app Chai Corp. Prosecutors executed search and seizure operations in 15 firms, including seven crypto exchanges, gathering data related to TerraUSD and Terra transactions. Approximately 200,000 Korean #investors incurred losses due to the severe price devaluation and collapse of the tokens in May.
#Nonfarm #BinanceLaunchpool
#SouthKorean prosecutors raided the home of Daniel Shin, co-founder of Terraform Labs, as part of an investigation into illegal activity linked to the collapse of the #TerraUSD stablecoin. Several raids on crypto exchanges and offices were conducted, including Shin’s payment app Chai Corp. Prosecutors executed search and seizure operations in 15 firms, including seven crypto exchanges, gathering data related to TerraUSD and Terra transactions. Approximately 200,000 Korean #investors incurred losses due to the severe price devaluation and collapse of the tokens in May.
#Nonfarm #BinanceLaunchpool
👉👉👉 Terraform Labs files for Chapter 11 bankruptcy in Delaware
Terraform Labs Pte. Ltd. filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Jan. 21, as reported by the court’s website. With estimated liabilities and assets ranging between $100 million and $500 million, the company, known for the algorithmic #stablecoin #TerraUSD and Luna cryptocurrency, faced a collapse in May 2022. In February 2023, the U.S. Securities and Exchange Commission (SEC) charged Terraform Labs and then-CEO Kwon Do-hyeong with fraud. Kwon, arrested in March for attempting to travel with false documents, awaits extradition from Montenegro, while the #SEC trial is postponed to late March.
Source - theblock.co
#CryptoNews #Cryptocurrrency
Terraform Labs Pte. Ltd. filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Jan. 21, as reported by the court’s website. With estimated liabilities and assets ranging between $100 million and $500 million, the company, known for the algorithmic #stablecoin #TerraUSD and Luna cryptocurrency, faced a collapse in May 2022. In February 2023, the U.S. Securities and Exchange Commission (SEC) charged Terraform Labs and then-CEO Kwon Do-hyeong with fraud. Kwon, arrested in March for attempting to travel with false documents, awaits extradition from Montenegro, while the #SEC trial is postponed to late March.
Source - theblock.co
#CryptoNews #Cryptocurrrency
2023: A Rollercoaster Year for Bitcoin and Crypto
Early-Year Challenges:
- Bitcoin started 2023 around $20,000, recovering from a challenging 2022.
- Lingering optimism faced headwinds from inflation and economic uncertainty.
May Market Collapse:
- #TerraUSD stablecoin collapse triggered a significant market downturn.
- Bitcoin dropped below $20,000, panic selling intensified.
Summer Recovery:
- Gradual recovery amid growing institutional interest.
- Traditional finance giants like BlackRock entered the crypto space.
- Bitcoin climbed back above $30,000, fostering positive sentiment.
September Surge and Disappointment:
- Brief surge in September with Bitcoin surpassing $45,000.
- Hopes around Ethereum's "merge" upgrade and increased #DEFI activity proved short-lived.
FTX Fallout in November:
- FTX exchange collapse, allegedly due to fraudulent activity.
- Bitcoin plummeted, raising concerns about regulation and systemic risk.
- Industry-wide calls for transparency and accountability.
Year of Innovation:
- Ethereum's successful merge to Proof-of-Stake enhanced scalability and energy efficiency.
- Adoption of Layer 2 solutions and zero-knowledge proofs addressed DeFi and NFT scalability and privacy concerns.
- Central bank digital currencies (CBDCs) gained focus, with pilot programs and exploration in several countries.
Regulatory Challenges:
- Ongoing regulatory anxieties, with the SEC scrutinizing exchanges and DeFi platforms.
- G20 and Financial Stability Board took tentative steps toward global regulatory frameworks.
Looking Ahead to 2024:
- Volatility and uncertainty persist in the crypto market.
- FTX saga prompted calls for reform and responsible innovation.
- Anticipation of increased regulation in 2024, potentially stabilizing the ecosystem.
- Shift towards practical blockchain applications beyond speculation and financial instruments.
#Bitcoin2024 #FTX #NFT
Early-Year Challenges:
- Bitcoin started 2023 around $20,000, recovering from a challenging 2022.
- Lingering optimism faced headwinds from inflation and economic uncertainty.
May Market Collapse:
- #TerraUSD stablecoin collapse triggered a significant market downturn.
- Bitcoin dropped below $20,000, panic selling intensified.
Summer Recovery:
- Gradual recovery amid growing institutional interest.
- Traditional finance giants like BlackRock entered the crypto space.
- Bitcoin climbed back above $30,000, fostering positive sentiment.
September Surge and Disappointment:
- Brief surge in September with Bitcoin surpassing $45,000.
- Hopes around Ethereum's "merge" upgrade and increased #DEFI activity proved short-lived.
FTX Fallout in November:
- FTX exchange collapse, allegedly due to fraudulent activity.
- Bitcoin plummeted, raising concerns about regulation and systemic risk.
- Industry-wide calls for transparency and accountability.
Year of Innovation:
- Ethereum's successful merge to Proof-of-Stake enhanced scalability and energy efficiency.
- Adoption of Layer 2 solutions and zero-knowledge proofs addressed DeFi and NFT scalability and privacy concerns.
- Central bank digital currencies (CBDCs) gained focus, with pilot programs and exploration in several countries.
Regulatory Challenges:
- Ongoing regulatory anxieties, with the SEC scrutinizing exchanges and DeFi platforms.
- G20 and Financial Stability Board took tentative steps toward global regulatory frameworks.
Looking Ahead to 2024:
- Volatility and uncertainty persist in the crypto market.
- FTX saga prompted calls for reform and responsible innovation.
- Anticipation of increased regulation in 2024, potentially stabilizing the ecosystem.
- Shift towards practical blockchain applications beyond speculation and financial instruments.
#Bitcoin2024 #FTX #NFT
Terra Says Citadel Securities Caused UST Stablecoin Depeg
As for the evidence, Terraform points to an alleged conversation Citadel founder Ken Griffin had with a pseudonymous trader.
Terraform Labs has accused U.S.-based American market-making firm Citadel Securities LLC of intentionally destabilizing its TerraUSD (UST) stablecoin in May 2022, alleging that the firm was the result of a "concerted, intentional effort" rather than an algorithmic failure.
The UST stablecoin was designed to maintain its 1:1 peg to the U.S. dollar by ensuring that the supply and demand for it are always balanced via an arbitrage strategy. If it traded higher than $1, the protocol incentivized users to mint UST and burn its sister token LUNA (also the network's staking and governance asset), aimed at lowering the Terra price of UST by increasing supply and increasing the LUNA price (by reducing its supply).
In a motion filed with the U.S. District Court for the Southern District of Florida earlier this week, Terraform requested Citadel Securities to produce certain documents related to its trading activities between March 1, 2022, and May 31, 2022.
According to Terraform, obtaining this information is “vital” to its defense in a legal action brought by the U.S. Securities and Exchange (SEC) in February this year, accusing the company and its co-founder Do Kwon of misleading investors about the stability of TerraUSD, which at one point plummeted from $1 to $0.02.
Movant strongly denies the SEC's allegations. "Movant argues that the market destabilization that occurred was not caused by instability of the algorithm underlying the UST stablecoin," the filing said. “Instead, Movant argues that the market became volatile due to a concerted and deliberate effort by certain third-party market participants to ‘short’ and cause UST to fall from its one dollar price.
A Citadel Securities spokesperson told Decrypt: “This frivolous motion is based on false social media posts and ignores information we already provided confirming we had no role whatsoever in this matter."
Last year’s collapse of the Terra ecosystem knocked more than $80 billion off the sector’s total value, sending shockwaves across the space and partially playing a role in the bankruptcy of several other prominent players, including Three Arrows Capital and Celsius Network.
When reached for comment, Terraform Labs pointed Decrypt to the motion in question.
Terraform cites ‘publicly available evidence’
The filing also points to "publicly available evidence" indicating that Citadel founder Ken Griffin intended to short the stablecoin during the de-pegging event in May 2022.
It also cites a screenshot from a Discord chat suggesting that Griffin discussed the plan with a pseudonymous trader going by the moniker @GiganticRebirth, sharing his intention to "Soros the out of Luna UST."
The filing indicates that the screenshot was provided by Real Vision co-founder Remi Tetot. Tetot did not immediately respond to Decrypt's request for comment.
Additionally, the motion cites a tweet by Jacob Canfield, a financial markets trader, who wrote in May 2022 that “rumor is citadel is the culprit.” Canfield did not immediately respond for comment.
Citadel Securities had previously denied any involvement in trading the UST stablecoin during the May 2022 de-pegging incident.
Furthermore, there have been reports suggesting that Terra's founder, Do Kwon, may have had prior knowledge of the stable coin's collapse.
⚠️Disclaimer:
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
#TerraUSD #Stablecoin $LUNA
Terraform Labs has accused U.S.-based American market-making firm Citadel Securities LLC of intentionally destabilizing its TerraUSD (UST) stablecoin in May 2022, alleging that the firm was the result of a "concerted, intentional effort" rather than an algorithmic failure.
The UST stablecoin was designed to maintain its 1:1 peg to the U.S. dollar by ensuring that the supply and demand for it are always balanced via an arbitrage strategy. If it traded higher than $1, the protocol incentivized users to mint UST and burn its sister token LUNA (also the network's staking and governance asset), aimed at lowering the Terra price of UST by increasing supply and increasing the LUNA price (by reducing its supply).
In a motion filed with the U.S. District Court for the Southern District of Florida earlier this week, Terraform requested Citadel Securities to produce certain documents related to its trading activities between March 1, 2022, and May 31, 2022.
According to Terraform, obtaining this information is “vital” to its defense in a legal action brought by the U.S. Securities and Exchange (SEC) in February this year, accusing the company and its co-founder Do Kwon of misleading investors about the stability of TerraUSD, which at one point plummeted from $1 to $0.02.
Movant strongly denies the SEC's allegations. "Movant argues that the market destabilization that occurred was not caused by instability of the algorithm underlying the UST stablecoin," the filing said. “Instead, Movant argues that the market became volatile due to a concerted and deliberate effort by certain third-party market participants to ‘short’ and cause UST to fall from its one dollar price.
A Citadel Securities spokesperson told Decrypt: “This frivolous motion is based on false social media posts and ignores information we already provided confirming we had no role whatsoever in this matter."
Last year’s collapse of the Terra ecosystem knocked more than $80 billion off the sector’s total value, sending shockwaves across the space and partially playing a role in the bankruptcy of several other prominent players, including Three Arrows Capital and Celsius Network.
When reached for comment, Terraform Labs pointed Decrypt to the motion in question.
Terraform cites ‘publicly available evidence’
The filing also points to "publicly available evidence" indicating that Citadel founder Ken Griffin intended to short the stablecoin during the de-pegging event in May 2022.
It also cites a screenshot from a Discord chat suggesting that Griffin discussed the plan with a pseudonymous trader going by the moniker @GiganticRebirth, sharing his intention to "Soros the out of Luna UST."
The filing indicates that the screenshot was provided by Real Vision co-founder Remi Tetot. Tetot did not immediately respond to Decrypt's request for comment.
Additionally, the motion cites a tweet by Jacob Canfield, a financial markets trader, who wrote in May 2022 that “rumor is citadel is the culprit.” Canfield did not immediately respond for comment.
Citadel Securities had previously denied any involvement in trading the UST stablecoin during the May 2022 de-pegging incident.
Furthermore, there have been reports suggesting that Terra's founder, Do Kwon, may have had prior knowledge of the stable coin's collapse.
⚠️Disclaimer:
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
#TerraUSD #Stablecoin $LUNA
Do Kwon Seeks to Postpone Court Proceedings in the United States
Do Kwon, co-founder of Terraform Labs, is striving to delay his court proceedings in the United States while simultaneously resolving his legal issues in Montenegro to ensure his physical presence in the U.S. court.
Request for Postponement of Court Date
Do Kwon, the co-founder of #TerraformLabs , is requesting the federal court in the Southern District of New York to reschedule his court hearing to March due to complications related to his extradition from Montenegro.
Kwon's Interest in Personal Attendance at the Court Process
In a letter dated January 11th, sent to Judge Jed Rakoff, Kwon’s legal team emphasized his desire to personally attend the court process, scheduled for January 29th. They expressed the hope that Kwon would be able to return to the USA in time: "Mr. Kwon wants to be personally at the court. His lawyers hoped that the extradition process in Montenegro would proceed more quickly."
SEC Accusations and Connection with the Collapse of TerraUSD
In February 2023, the SEC accused Kwon of fraudulent activities, alleging that he was involved in organizing a large-scale crypto currency fraud. The accusation is related to the collapse of the #TerraUSD (USTC) stablecoin of TerraformLabs and its associated token #Terra (#LUNA ).
Response of Kwon's Legal Team to the Urgency of the Process
Kwon's legal team acknowledged the urgency of the court process but stated that Kwon could not attend this month. "We understand that the court cannot be indefinitely postponed, but moving the date to mid-March could realistically enable Mr. Kwon to attend the process," the letter stated.
New Decision of the Appeals Court in Montenegro
In December 2023, it was announced that the appellate court in Montenegro overturned the decision to extradite #kwon either to the USA or to South Korea. This was revealed just a week after it was announced that U.S. and South Korean authorities requested his detention for an additional two months after the end of his custody.
Efforts of the USA and South Korea for Kwon's Extradition
Both the USA and South Korea are seeking Kwon's extradition, with speculations in both countries about the potential outcome of his case.
Kwon's Arrest and Forged Documents
Kwon was arrested in Montenegro in March 2023 after he attempted to leave the country with forged travel documents.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Request for Postponement of Court Date
Do Kwon, the co-founder of #TerraformLabs , is requesting the federal court in the Southern District of New York to reschedule his court hearing to March due to complications related to his extradition from Montenegro.
Kwon's Interest in Personal Attendance at the Court Process
In a letter dated January 11th, sent to Judge Jed Rakoff, Kwon’s legal team emphasized his desire to personally attend the court process, scheduled for January 29th. They expressed the hope that Kwon would be able to return to the USA in time: "Mr. Kwon wants to be personally at the court. His lawyers hoped that the extradition process in Montenegro would proceed more quickly."
SEC Accusations and Connection with the Collapse of TerraUSD
In February 2023, the SEC accused Kwon of fraudulent activities, alleging that he was involved in organizing a large-scale crypto currency fraud. The accusation is related to the collapse of the #TerraUSD (USTC) stablecoin of TerraformLabs and its associated token #Terra (#LUNA ).
Response of Kwon's Legal Team to the Urgency of the Process
Kwon's legal team acknowledged the urgency of the court process but stated that Kwon could not attend this month. "We understand that the court cannot be indefinitely postponed, but moving the date to mid-March could realistically enable Mr. Kwon to attend the process," the letter stated.
New Decision of the Appeals Court in Montenegro
In December 2023, it was announced that the appellate court in Montenegro overturned the decision to extradite #kwon either to the USA or to South Korea. This was revealed just a week after it was announced that U.S. and South Korean authorities requested his detention for an additional two months after the end of his custody.
Efforts of the USA and South Korea for Kwon's Extradition
Both the USA and South Korea are seeking Kwon's extradition, with speculations in both countries about the potential outcome of his case.
Kwon's Arrest and Forged Documents
Kwon was arrested in Montenegro in March 2023 after he attempted to leave the country with forged travel documents.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
#DoKwon is wanted by the South Korean and U.S. governments.
After the collapse of #TerraUSD Do Kwon fled South Korea to Europe. There are even reports that he was in Singapore, until he was arrested for attempting to flee Montenegro.
His intentions to evade justice started since the South Korean government issued a warrant for his arrest on September 14, 2022. When they failed to catch him, they even asked Interpol to issue a red alert against him. At the time of writing, the governments of Montenegro and South Korea are in negotiations to extradite him.
Also, the U.S. Securities and Exchange Commission, #SEC , has charged Do Kwon with multi-million dollar fraud for the collapse of LUNA/Terra. This also puts the United States on the hunt for Do Kwon. The LUNA founder has even tried to avoid the SEC investigation in Singapore.
After the collapse of #TerraUSD Do Kwon fled South Korea to Europe. There are even reports that he was in Singapore, until he was arrested for attempting to flee Montenegro.
His intentions to evade justice started since the South Korean government issued a warrant for his arrest on September 14, 2022. When they failed to catch him, they even asked Interpol to issue a red alert against him. At the time of writing, the governments of Montenegro and South Korea are in negotiations to extradite him.
Also, the U.S. Securities and Exchange Commission, #SEC , has charged Do Kwon with multi-million dollar fraud for the collapse of LUNA/Terra. This also puts the United States on the hunt for Do Kwon. The LUNA founder has even tried to avoid the SEC investigation in Singapore.
Chris Amani former COO of Terraform Labs, has been promoted to Director and Temporary CEO
#Terraform Labs has named Chris Amani as temporary Chief Executive Officer (CEO), succeeding co-founder Do Kwon.
Chris Amani, an accomplished leader with more than two decades of experience in the IT business, has been appointed as Terraform Labs' temporary CEO. Amani offers tremendous insights and skills to this new post, having served as Chief Operational Officer (COO) and Chief Financial Officer (CFO) since joining the firm in 2021.
Earlier, Amani had executive roles at firms such as MongoDB, Electronic Arts, and Zynga. His in-depth knowledge of TFL's operations and strategy qualifies him to guide the firm through its present obstacles and propel its goal forward.
This judgment comes as Kwon faces extradition from Montenegro, where he is presently serving a jail term, to South Korea or the United States.
Terra, renowned for its TerraUSD and Luna cryptocurrencies, suffered a huge blow in May 2022 when its stablecoin collapsed, causing a ripple effect across the crypto market.#lunc
Do Kwon's legal problems aggravated the issue further, with allegations of deceiving investors and accused participation in illegal operations during the collapse.
Notwithstanding these obstacles, Chris Amani reaffirmed his intention to revive the Terra blockchain and working on building apps with genuine use.
TFL's turnaround strategy include executing a clear vision for Terra's place within the larger Web3 ecosystem, which Amani and the team are committed to putting into action.
During this rebuilding period, the new CEO highlighted the value of community engagement and shared objectives. The firm, which employs around 40 people, will continue to function without #DoKwon 's leadership while he attends to his legal matters.
The staff is confident in its abilities to rescue the situation and is hard at work developing strategies to move the firm forward. Yet, the legal difficulties regarding Do Kwon's role in the collapse have been a major source of worry.
Terra's recovery strategy is complicated, but the team is motivated to bring value back to the Terra Classic environment.
"The process will not be simple," Amain said in a statement, "but we have a clear vision of where Terra belongs within the greater Web3 ecosystem and are hyper-focused on executing against that goal." We hope to provide more information on this shortly."
Reduced node synchronization times, the creation of a #TerraUSD testnet, the development of yield-generating apps, and the implementation of a developer incentive scheme are all part of the goal.
Chris Amani, an accomplished leader with more than two decades of experience in the IT business, has been appointed as Terraform Labs' temporary CEO. Amani offers tremendous insights and skills to this new post, having served as Chief Operational Officer (COO) and Chief Financial Officer (CFO) since joining the firm in 2021.
Earlier, Amani had executive roles at firms such as MongoDB, Electronic Arts, and Zynga. His in-depth knowledge of TFL's operations and strategy qualifies him to guide the firm through its present obstacles and propel its goal forward.
This judgment comes as Kwon faces extradition from Montenegro, where he is presently serving a jail term, to South Korea or the United States.
Terra, renowned for its TerraUSD and Luna cryptocurrencies, suffered a huge blow in May 2022 when its stablecoin collapsed, causing a ripple effect across the crypto market.#lunc
Do Kwon's legal problems aggravated the issue further, with allegations of deceiving investors and accused participation in illegal operations during the collapse.
Notwithstanding these obstacles, Chris Amani reaffirmed his intention to revive the Terra blockchain and working on building apps with genuine use.
TFL's turnaround strategy include executing a clear vision for Terra's place within the larger Web3 ecosystem, which Amani and the team are committed to putting into action.
During this rebuilding period, the new CEO highlighted the value of community engagement and shared objectives. The firm, which employs around 40 people, will continue to function without #DoKwon 's leadership while he attends to his legal matters.
The staff is confident in its abilities to rescue the situation and is hard at work developing strategies to move the firm forward. Yet, the legal difficulties regarding Do Kwon's role in the collapse have been a major source of worry.
Terra's recovery strategy is complicated, but the team is motivated to bring value back to the Terra Classic environment.
"The process will not be simple," Amain said in a statement, "but we have a clear vision of where Terra belongs within the greater Web3 ecosystem and are hyper-focused on executing against that goal." We hope to provide more information on this shortly."
Reduced node synchronization times, the creation of a #TerraUSD testnet, the development of yield-generating apps, and the implementation of a developer incentive scheme are all part of the goal.
Korean Prosecutors Target Terra Founder Do Kwon's Crypto Assets Amid Multi-Country Legal Issues
Korean prosecutors are targeting the cryptocurrency assets of #DoKwon , the founder of failed blockchain project Terra.
Kwon allegedly funneled tens of millions of dollars out of Luna Foundation Guard (LFG), which he set up to help defend his now-defunct stablecoin TerraUSD's peg to the dollar, according to Dan Sunghan, director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service.
The whereabouts of Kwon's $29 million worth of digital tokens, which were transferred from a crypto wallet belonging to LFG, are currently unclear, Sunghan said in a recent interview with Bloomberg News.
He added that the funds his unit is tracing are in addition to more than 10,000 Bitcoin that Kwon had already diverted from his entities.
Alongside this, he and his associates still hold just over $13 million at Swiss crypto-focused lender Sygnum Bank AG.
“We’re assuming that Do Kwon, or someone under his direction, took out the amount and moved it to another wallet, not to Sygnum, and cashed it out somewhere else,” after his arrest, Sunghan said.
South Korean prosecutors are attempting to have the remaining $13 million held at Sygnum frozen.
The funds were transferred from LFG's crypto wallet to a separate one before moving via an over-the-counter service to the bank.
South Korean prosecutors are also attempting to trace the whereabouts of Kwon's assets, which were likely moved by Kwon personally or at his direction.
Kwon Could Serve Time in Both South Korea and the US
Sunghan also said that Kwon’s extradition to South Korea makes more sense but added that the Terraform Labs co-founder could serve time in the United States as well.
Kwon was arrested in Montenegro in March for allegedly using forged travel documents.
In addition to this, Kwon was charged with eight counts of fraud in New York, which include two counts each of securities fraud, wire fraud, commodities fraud, and conspiracy.
US prosecutors alleged that Kwon made a series of false and misleading statements during a TV interview about the extent to which the Terra blockchain had been adopted by users.
The US Securities and Exchange Commission (SEC) has also sued Terraform Labs and CEO Kwon for allegedly orchestrating a multibillion-dollar cryptocurrency fraud.
The commission said that Terraform and Kwon raised billions of dollars from investors during the period between 2018 to May 2022 by selling “crypto asset securities” in the form of synthetic assets or “mAssets,” algorithmic stablecoin Terra USD (UST), and its sister cryptocurrency LUNA.
Moreover, the #SEC claimed that Kwon transferred more than 10,000 Bitcoin from the LFG reserves to a cold wallet, and has been cashing out via a Swiss financial institution.
Kwon's project, #TerraUSD , formerly a centerpiece of the Terra blockchain ecosystem, collapsed in early May 2022, causing crypto markets to tumble.
Following this, Kwon disappeared from public view, leading to speculation regarding the whereabouts of crypto held with LFG.
#lunc #luna
Kwon allegedly funneled tens of millions of dollars out of Luna Foundation Guard (LFG), which he set up to help defend his now-defunct stablecoin TerraUSD's peg to the dollar, according to Dan Sunghan, director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service.
The whereabouts of Kwon's $29 million worth of digital tokens, which were transferred from a crypto wallet belonging to LFG, are currently unclear, Sunghan said in a recent interview with Bloomberg News.
He added that the funds his unit is tracing are in addition to more than 10,000 Bitcoin that Kwon had already diverted from his entities.
Alongside this, he and his associates still hold just over $13 million at Swiss crypto-focused lender Sygnum Bank AG.
“We’re assuming that Do Kwon, or someone under his direction, took out the amount and moved it to another wallet, not to Sygnum, and cashed it out somewhere else,” after his arrest, Sunghan said.
South Korean prosecutors are attempting to have the remaining $13 million held at Sygnum frozen.
The funds were transferred from LFG's crypto wallet to a separate one before moving via an over-the-counter service to the bank.
South Korean prosecutors are also attempting to trace the whereabouts of Kwon's assets, which were likely moved by Kwon personally or at his direction.
Kwon Could Serve Time in Both South Korea and the US
Sunghan also said that Kwon’s extradition to South Korea makes more sense but added that the Terraform Labs co-founder could serve time in the United States as well.
Kwon was arrested in Montenegro in March for allegedly using forged travel documents.
In addition to this, Kwon was charged with eight counts of fraud in New York, which include two counts each of securities fraud, wire fraud, commodities fraud, and conspiracy.
US prosecutors alleged that Kwon made a series of false and misleading statements during a TV interview about the extent to which the Terra blockchain had been adopted by users.
The US Securities and Exchange Commission (SEC) has also sued Terraform Labs and CEO Kwon for allegedly orchestrating a multibillion-dollar cryptocurrency fraud.
The commission said that Terraform and Kwon raised billions of dollars from investors during the period between 2018 to May 2022 by selling “crypto asset securities” in the form of synthetic assets or “mAssets,” algorithmic stablecoin Terra USD (UST), and its sister cryptocurrency LUNA.
Moreover, the #SEC claimed that Kwon transferred more than 10,000 Bitcoin from the LFG reserves to a cold wallet, and has been cashing out via a Swiss financial institution.
Kwon's project, #TerraUSD , formerly a centerpiece of the Terra blockchain ecosystem, collapsed in early May 2022, causing crypto markets to tumble.
Following this, Kwon disappeared from public view, leading to speculation regarding the whereabouts of crypto held with LFG.
#lunc #luna
#Terraform Labs Links LUNA and #UST Crash to Citadel's Ken Griffin
Terraform Labs (TFL) has filed a motion to compel Citadel Securities to disclose documents related to its trading activity in May 2022.
In early May of that year, the algorithmic stablecoin #TerraUSD (UST) lost its peg to the US dollar, leading to a collapse in the token LUNA, resulting in traders and investors losing around $40 billion. TFL, the company behind the Terra ecosystem, contends that the asset's decline was not due to algorithm instability, contrary to the SEC's accusations.
"Instead, the Applicant contends that the market was destabilized by coordinated, deliberate efforts by certain third-party participants to short UST and force it off the dollar peg,"
The company cited "publicly available evidence" suggesting that Citadel's founder and CEO, Ken Griffin, intended to orchestrate a stablecoin sell-off.
The motion quotes Remi Tetot, Head of Global Macro Investor Research, who allegedly wrote after a lunch with Griffin that they were "going Soros style to #LUNA and UST."
TFL also pointed to a tweet by entrepreneur Jacob Canfield on May 10, 2022, describing Citadel's alleged UST shorting operations. The investment firm strongly refuted these claims, including in comments to Forbes. As one of the pieces of evidence linking Citadel to the TFL collapse.
"There's nothing surprising about this. Citadel, with roughly $61 billion of investment capital at its disposal, is precisely the kind of organization that has the funding, resources, and skills to make colossal bets and even attempt to intentionally move markets," TFL said.
The company has requested the Southern District of Florida court to demand information from Citadel regarding "trading operations, strategies, and wallet interactions concerning Terra's native tokens and financial instruments."
TFL claims that these documents are crucial for its defense against the SEC's civil lawsuit. The regulator has brought claims against the company and its CEO, #DoKwon related to a multi-billion dollar securities fraud.
Terraform Labs (TFL) has filed a motion to compel Citadel Securities to disclose documents related to its trading activity in May 2022.
In early May of that year, the algorithmic stablecoin #TerraUSD (UST) lost its peg to the US dollar, leading to a collapse in the token LUNA, resulting in traders and investors losing around $40 billion. TFL, the company behind the Terra ecosystem, contends that the asset's decline was not due to algorithm instability, contrary to the SEC's accusations.
"Instead, the Applicant contends that the market was destabilized by coordinated, deliberate efforts by certain third-party participants to short UST and force it off the dollar peg,"
The company cited "publicly available evidence" suggesting that Citadel's founder and CEO, Ken Griffin, intended to orchestrate a stablecoin sell-off.
The motion quotes Remi Tetot, Head of Global Macro Investor Research, who allegedly wrote after a lunch with Griffin that they were "going Soros style to #LUNA and UST."
TFL also pointed to a tweet by entrepreneur Jacob Canfield on May 10, 2022, describing Citadel's alleged UST shorting operations. The investment firm strongly refuted these claims, including in comments to Forbes. As one of the pieces of evidence linking Citadel to the TFL collapse.
"There's nothing surprising about this. Citadel, with roughly $61 billion of investment capital at its disposal, is precisely the kind of organization that has the funding, resources, and skills to make colossal bets and even attempt to intentionally move markets," TFL said.
The company has requested the Southern District of Florida court to demand information from Citadel regarding "trading operations, strategies, and wallet interactions concerning Terra's native tokens and financial instruments."
TFL claims that these documents are crucial for its defense against the SEC's civil lawsuit. The regulator has brought claims against the company and its CEO, #DoKwon related to a multi-billion dollar securities fraud.
$26,000,000 Worth of Do Kwon and Terraform Labs’ Assets Frozen by Swiss Police
Swiss authorities have reportedly frozen $26 million worth of assets from #Terraform Labs and its founder, former crypto billionaire Do Kwon.
The assets frozen included #Bitcoin (BTC), and was frozen from Swiss digital asset bank Sygnum, reports Korean outlet Digital Asset.
Sygnum froze the assets after Swiss authorities received requests from the New York Attorney’s Office, and the U.S. Securities and Exchange Commission (SEC).
The frozen assets reportedly belong to Kwon, his associate Hang Chang-joon and former head of research at Terraform Labs Nicholas Platias.
Earlier this month, South Korean prosecutors alleged that Kwon had moved $29 million worth of crypto assets out of Terraform Labs’ possession after his arrest in Montenegro.
#Kwon has already spent more than three months of a four-month prison sentence in Montenegro for using a forged Costa Rican passport, though the relatively short sentence likely won’t be the end of the Terra founder’s problems.
Authorities in the United States and South Korea both want to extradite the disgraced crypto executive, who’s facing multiple charges arising from the $40 billion crash of the #Terra ecosystem and its stablecoin #TerraUSD (UST).
Dan Sunghan, the director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service, recently told Bloomberg that Kwon could serve more than four decades behind bars, after being responsible for what is believed to be the largest financial fraud case in South Korean history.
The assets frozen included #Bitcoin (BTC), and was frozen from Swiss digital asset bank Sygnum, reports Korean outlet Digital Asset.
Sygnum froze the assets after Swiss authorities received requests from the New York Attorney’s Office, and the U.S. Securities and Exchange Commission (SEC).
The frozen assets reportedly belong to Kwon, his associate Hang Chang-joon and former head of research at Terraform Labs Nicholas Platias.
Earlier this month, South Korean prosecutors alleged that Kwon had moved $29 million worth of crypto assets out of Terraform Labs’ possession after his arrest in Montenegro.
#Kwon has already spent more than three months of a four-month prison sentence in Montenegro for using a forged Costa Rican passport, though the relatively short sentence likely won’t be the end of the Terra founder’s problems.
Authorities in the United States and South Korea both want to extradite the disgraced crypto executive, who’s facing multiple charges arising from the $40 billion crash of the #Terra ecosystem and its stablecoin #TerraUSD (UST).
Dan Sunghan, the director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service, recently told Bloomberg that Kwon could serve more than four decades behind bars, after being responsible for what is believed to be the largest financial fraud case in South Korean history.
Ex-Terraform Labs Developer Testifies Against Do Kwon in South Korean Court
On Monday, a former developer from #Terraform Labs named Lee testified that Kwon Do-hyeong and Shin Hyun-seung, co-founders of the company, promoted #TerraUSD stablecoins as a potential payment option for investors, even though they were aware that local regulations prohibited such an offering, according to local media reports.
Testimony During a Court Hearing
The testimony was presented during a witness's examination in the third legal case involving eight former members of Terraform Labs, including Shin, as reported by the local news channel Chosun Ilbo. The full name of the former developer Lee was not disclosed due to South Korea's privacy protection rules.
After the catastrophic collapse of the Terra-Luna #crypto project in 2022, South Korean prosecutors accused Kwon, Shin, and Terraform Labs of deceiving investors by falsely promoting that Terra stablecoins pegged to the USD could be used as a means of payment.
However, at that time, Shin claimed that regulators had not taken a clear stance on the use of cryptocurrencies as a payment method. Shin also stated that he had left Terra two years before the collapse and had no connection to the debacle.
Lee, the former developer, allegedly testified that Kwon had stated that South Korean financial regulations prohibited the use of TerraUSD as a payment method, suggesting that Terra's managers were aware of the stablecoin's limitations. In response, Shin's defense team argued that such testimony was false.
Meanwhile, on Monday, the former financial director of Terra, Han Chang-joon, a key associate of Kwon, was extradited from Montenegro to South Korea. It is expected that Han will arrive in Seoul on Tuesday afternoon in Asia and subsequently face an investigation by local prosecutors, as reported by the local news portal Aju Business Daily.
In March of last year, Han and Kwon were arrested at the Montenegrin airport for attempting to travel with counterfeit documents. Kwon remains in custody in Montenegro as local authorities continue to consider whether to extradite him to South Korea or the USA.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
Testimony During a Court Hearing
The testimony was presented during a witness's examination in the third legal case involving eight former members of Terraform Labs, including Shin, as reported by the local news channel Chosun Ilbo. The full name of the former developer Lee was not disclosed due to South Korea's privacy protection rules.
After the catastrophic collapse of the Terra-Luna #crypto project in 2022, South Korean prosecutors accused Kwon, Shin, and Terraform Labs of deceiving investors by falsely promoting that Terra stablecoins pegged to the USD could be used as a means of payment.
However, at that time, Shin claimed that regulators had not taken a clear stance on the use of cryptocurrencies as a payment method. Shin also stated that he had left Terra two years before the collapse and had no connection to the debacle.
Lee, the former developer, allegedly testified that Kwon had stated that South Korean financial regulations prohibited the use of TerraUSD as a payment method, suggesting that Terra's managers were aware of the stablecoin's limitations. In response, Shin's defense team argued that such testimony was false.
Meanwhile, on Monday, the former financial director of Terra, Han Chang-joon, a key associate of Kwon, was extradited from Montenegro to South Korea. It is expected that Han will arrive in Seoul on Tuesday afternoon in Asia and subsequently face an investigation by local prosecutors, as reported by the local news portal Aju Business Daily.
In March of last year, Han and Kwon were arrested at the Montenegrin airport for attempting to travel with counterfeit documents. Kwon remains in custody in Montenegro as local authorities continue to consider whether to extradite him to South Korea or the USA.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
#Terraform Labs Fights Back: $5.3 Billion SEC Fine Faces $1 Million Counterpunch
Terraform Labs (#TFL ) is throwing punches back at the SEC's hefty $5.3 billion fine for Do Kwon's alleged fraud with #TerraUSD (#UST ). Their lawyers argue the penalty should be slashed to just $1 million, a 99% reduction.
The crux of their defense? The Luna Foundation Guard (LFG), not TFL, held the funds from the UST sales. TFL's lawyers claim the SEC should have pursued LFG directly for disgorgement (returning those funds).
This counters the SEC's demands for $4.7 billion in disgorgement and prejudgment interest, plus $520 million in civil penalties.
This legal battle adds another layer to the Terraform Labs saga. The company and Do Kwon were found guilty by a jury in April, leading to his current extradition fight in Montenegro.
The ripple effects of Terraform Labs' collapse in 2022 are still felt, with companies like BlockFi, Celcius, and #FTX all facing bankruptcy.
Will TFL's legal counteroffensive land? Only time will tell, but this fight is far from over.
Terraform Labs (#TFL ) is throwing punches back at the SEC's hefty $5.3 billion fine for Do Kwon's alleged fraud with #TerraUSD (#UST ). Their lawyers argue the penalty should be slashed to just $1 million, a 99% reduction.
The crux of their defense? The Luna Foundation Guard (LFG), not TFL, held the funds from the UST sales. TFL's lawyers claim the SEC should have pursued LFG directly for disgorgement (returning those funds).
This counters the SEC's demands for $4.7 billion in disgorgement and prejudgment interest, plus $520 million in civil penalties.
This legal battle adds another layer to the Terraform Labs saga. The company and Do Kwon were found guilty by a jury in April, leading to his current extradition fight in Montenegro.
The ripple effects of Terraform Labs' collapse in 2022 are still felt, with companies like BlockFi, Celcius, and #FTX all facing bankruptcy.
Will TFL's legal counteroffensive land? Only time will tell, but this fight is far from over.
See original
Worst Cryptocurrency of 2024
In 2024, the worst cryptocurrency was TerraUSD ($UST), an algorithmic stablecoin of the Terra project:
1. In May 2024, UST lost its peg to the US dollar, which led to the collapse of the entire Terra ecosystem.
2. The price of UST fell to 10 cents, and its sister token LUNA became almost worthless due to the rate maintenance algorithm.
3. The collapse of Terra dealt a serious blow to the stablecoin market and caused a massive crypto sell-off.
4. Investors lost billions of dollars invested in UST and LUNA. Many DeFi companies and protocols have been affected.
5. The Terra developers were never able to restore confidence in their project after this fiasco.
The sad story of TerraUSD became a lesson about the risks of algorithmic stablecoins and the importance of reliable mechanisms for ensuring the stability of cryptocurrencies.
What do you think about this cryptocurrency?
Write in the comments and subscribe so as not to miss other crypto posts
#TerraUSD #ХудшаяКриптовалюта #Крах #Стейблкоины #Риски
In 2024, the worst cryptocurrency was TerraUSD ($UST), an algorithmic stablecoin of the Terra project:
1. In May 2024, UST lost its peg to the US dollar, which led to the collapse of the entire Terra ecosystem.
2. The price of UST fell to 10 cents, and its sister token LUNA became almost worthless due to the rate maintenance algorithm.
3. The collapse of Terra dealt a serious blow to the stablecoin market and caused a massive crypto sell-off.
4. Investors lost billions of dollars invested in UST and LUNA. Many DeFi companies and protocols have been affected.
5. The Terra developers were never able to restore confidence in their project after this fiasco.
The sad story of TerraUSD became a lesson about the risks of algorithmic stablecoins and the importance of reliable mechanisms for ensuring the stability of cryptocurrencies.
What do you think about this cryptocurrency?
Write in the comments and subscribe so as not to miss other crypto posts
#TerraUSD #ХудшаяКриптовалюта #Крах #Стейблкоины #Риски
👉👉👉 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
#CryptoNews #BinanceSquare #cryptocurrency
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
#CryptoNews #BinanceSquare #cryptocurrency
Former Employee Exposes Terraform Labs. 📇ℹ️
Terraform Labs, a prominent name in cryptocurrency, is now under scrutiny as serious allegations surface from a former employee. Lee, a whistleblower, sheds light on alleged illicit activities by Terraform Labs founders, Kwon Do-hyeong and Shin Hyun-seung.
Kwon and Shin are accused of considering TerraUSD as a payment option to investors, despite its potential legal ramifications. Lee contends that the founders, fully aware of the illegality, still saw TerraUSD as a means of payment, raising significant ethical concerns.
South Korean authorities have initiated legal action against Kwon and Shin following the collapse of the Terra-Luna project. This legal move suggests that the founders might be held accountable for their actions.
Lee's testimony reveals that Kwon was cognizant of the fact that TerraUSD, being a stablecoin, couldn't be utilized as a legitimate payment method.
In a twist, Terra CFO Han Chang-joon has been extradited from Montenegro to South Korea, indicating an impending investigation by Korean authorities.
The unfolding events cast a shadow of potential legal repercussions for Terraform Labs and its founders. The cryptocurrency community eagerly awaits further details as the investigation continues to unfold. Stay tuned for updates on this evolving story.
#TerraLunaClassic #Terraform #TerraUSD #DoKwon #SouthKorea
Terraform Labs, a prominent name in cryptocurrency, is now under scrutiny as serious allegations surface from a former employee. Lee, a whistleblower, sheds light on alleged illicit activities by Terraform Labs founders, Kwon Do-hyeong and Shin Hyun-seung.
Kwon and Shin are accused of considering TerraUSD as a payment option to investors, despite its potential legal ramifications. Lee contends that the founders, fully aware of the illegality, still saw TerraUSD as a means of payment, raising significant ethical concerns.
South Korean authorities have initiated legal action against Kwon and Shin following the collapse of the Terra-Luna project. This legal move suggests that the founders might be held accountable for their actions.
Lee's testimony reveals that Kwon was cognizant of the fact that TerraUSD, being a stablecoin, couldn't be utilized as a legitimate payment method.
In a twist, Terra CFO Han Chang-joon has been extradited from Montenegro to South Korea, indicating an impending investigation by Korean authorities.
The unfolding events cast a shadow of potential legal repercussions for Terraform Labs and its founders. The cryptocurrency community eagerly awaits further details as the investigation continues to unfold. Stay tuned for updates on this evolving story.
#TerraLunaClassic #Terraform #TerraUSD #DoKwon #SouthKorea
