Terra

<p>A former development team leader at Terraform Labs has provided critical testimony in a South Korean court, alleging that co-founders <a href="https://www.cryptopolitan.com/montenegro-hand-over-do-kwon-partner/" rel="noopener noreferrer nofollow">Do Kwon </a>and Shin Hyun-seung knowingly promoted TerraUSD (UST) as a payment option despite being aware of its legal impossibility. The witness, identified as “Mr. Lee,” shared his insights during the trial of the two co-founders facing legal scrutiny in the aftermath of Terraform Labs’ collapse in May 2022.</p>
<p>Terraform Labs, founded in 2018 by Do Kwon and Shin Hyun-seung, gained prominence with the launch of its native token, LUNA, in 2019. In 2020, the company introduced TerraUSD (UST), an algorithmic stablecoin that plays a pivotal role in the Terra ecosystem. However, the company’s success was short-lived as it faced a series of challenges and eventually collapsed.</p>
<h2 class="wp-block-heading" id="witness-testimony-raises-concerns">Witness testimony raises concerns</h2>
<p>The key development in the ongoing trial of Do Kwon and Shin Hyun-seung came from the testimony of Mr. Lee, a former development team leader at Terraform Labs. Mr. Lee<a href="https://www.chosun.com/national/national_general/2024/02/05/SYMPLBYW4RDALM2DLHZYPQVRYQ/" rel="noopener noreferrer nofollow" target="_blank"> revealed</a> that he knew the legal limitations surrounding the Terra project while working for the company. According to him, the Terra project was considered “legally impossible.”</p>
<p>When questioned by the prosecutor about how he became aware of this, Mr. Lee stated that he “heard it through (Terraform Labs founder) Kwon Do-hyung.” This revelation implies that the co-founders were aware of the legal hurdles associated with TerraUSD.</p>
<p>In response to the witness’s claims, the defense vehemently denied the allegations, labeling them ” untrue.” They argued that Do Kwon and Shin Hyun-seung had never acknowledged that South Korean financial regulations prohibited TerraUSD from being a payment option via “Chai Pay.” Instead, the defense asserted that the co-founders had expressed a different viewpoint and did not believe the legal limitations applied.</p>
<h2 class="wp-block-heading" id="ongoing-legal-proceedings">Ongoing legal proceedings</h2>
<p>The legal proceedings against the co-founders are unfolding simultaneously. While Shin Hyun-seung’s trial is underway, Do Kwon remains in custody in Montenegro. The decision regarding Do Kwon’s potential extradition is expected before February 15, which marks the expiration of his detention.</p>
<p>The testimony of Mr. Lee has raised significant concerns about the conduct of Do Kwon and Shin Hyun-seung during their tenure at Terraform Labs. The allegation that they promoted TerraUSD as a payment option despite being aware of its legal impossibility could have far-reaching implications for their defense.</p>
<p>If the court finds merit in Mr. Lee’s testimony, it could lead to serious consequences for the co-founders, including criminal charges related to financial regulations. This case underscores the importance of adhering to legal guidelines and regulations within the rapidly evolving cryptocurrency and blockchain industry.</p>

Former insider drops bombshell: TerraUSD’s dark secrets revealed

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