Terra Crypto Exec disbands South Korea headquarters before collapse

A person holds a phone with the Terra symbol and the word Terra Luna

photo: Researcher Neko (Shutterstock)

Just a week before the price of TerraUSD and its partner token, Luna, collapsed completely, company founder Do Kwon and other executives decided to close their home in South Korea, South Korean Supreme Court documents show.

The timing of the Terra blockchain price crash and the timing of big investors cashing out has added more pressure to Terra executives to explain what happened to their so-called “stable” stablecoins than the latest disclosures.

South Korean online media outlet Digital Today reported that Terraform Labs Korea decided to dissolve its Busan headquarters and Seoul branch at a shareholder meeting on April 30, according to documents from the South Korean Supreme Court registry.These same documents are shared here Reddit thread, although Gizmodo cannot independently verify the file. The headquarters was reportedly dissolved on May 4, while the Seoul branch was cancelled a day later. the same weekend, Terra is starting to see its price fluctuateresulting in a complete crash.

this New York Times Many big-money investors in the Terra ecosystem were able to cash out from the company in the months before the big crash, while many other small retail investors and traders in Terra and Luna suffered heavy losses, it was reported Wednesday.According to reports, users of the coin Lost millions in crashwhen Terra’s algorithmically designed stablecoin lost its 1-to-1 peg to the U.S. dollar, a knock-on effect that caused the prices of Terra and Luna to plummet.

small investor been unhappy. According to reports, one even Appear At Kwon’s home in South Korea, the wife was repeatedly asked “Is your husband at home?” before escaping.Weeks after the collapse, the nonprofit Luna Foundation Guard revealed it had Lost billions of dollars Attempts to stabilize Terra’s collapse by extracting bitcoin of value from its reserves ultimately failed.

Korea Times South Korean prosecutors are now considering fraud charges against Kwon, it was reported Friday.Not only that, but international regulatory bodies A partnership with the crypto brothers is under consideration to eventually regulate what has long been dubbed “decentralized finance.”

Meanwhile, the Luna Foundation had not heard from Kwon in the weeks following its collapse, said Jonathan Caras, an adviser to the LFG governing board. TechCrunch. The source further stated that TerraUST is “almost defunct.”

Kwon from investment company Years since Terraform Labs was founded in 2018. The company is incorporated in Singapore, but Kwon, who was born in South Korea, helps launch operations in his home country through Terraform Labs’ Korea headquarters, which opened in Busan in June 2019. Kwon has been flying since Shin Hoon-sung, who joined the company as a co-founder in 2019, resigned in 2020 and has been the head of the company.

Meanwhile, Kwon is already promoting a new “Earth 2.0,” to rename the old Terra and Luna to “Classic,” even though both coins are traded hardly at the time of reporting. A governance proposal that Terra community members can vote on would sidestep the failing algorithmic stablecoin, effectively replacing it with Luna on the new Terra blockchain. Kwon said the new Luna tokens will be airdropped to classic users.in his revival plan WireKwon said that Terra’s pegged failure was “Terra’s DAO hacking moment — an opportunity to rise from the ashes.”

So, what’s new in this planned launch compared to the multitude of cryptocurrency options around? Not much other than keeping the existing Terra infrastructure.

Kwon’s original tweet stated that he was backed by 15 “terra builders,” and a bunch of cryptocurrency exchanges Kwon flagged said they all supported the move.after a preliminary poll The vast majority of users oppose the hard fork, more Seems to be picking up on the idea.

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