Cryptocurrency creator Terra (Luna) and other Terraform Labs executives are still at large, but South Korean authorities want to question the coin’s co-founder and other individuals linked to the coin’s collapse.
The National Assembly of South Korea has summoned the founder of Luna, Shin Hyun-sung, aka Daniel Shin, to testify before Parliament of the Financial Services Commission (FSC), the country’s chief financial watchdog.
According to local news, Shin has been called for questioning at the National Assembly’s financial audit committee, which will focus on the cryptocurrency industry’s response to the collapse of Luna and UST. The committee will meet at the end of next week.
In July of this year, it’s worth remembering that the home of Luna’s co-founder was raided by South Korean prosecutors investigating the currency crash.
Authorities also summoned Kim Jiyun, the CEO of a company called DSRV Labs, which was associated with Terraform.
Real estate owners will be questioned
The directors of several cryptocurrency exchanges were also asked to explain why there was such a huge discrepancy in the time it took to remove TerraLuna at the time of the crash.
Officials say the companies should have acted in a rationalized and coordinated manner to avoid losing $40 billion in investors.
Instead, they say, exchanges “chose not to remove LUNC immediately,” while others withdrew the coin only weeks later after the tide of public opinion effectively forced their hand.
Upbit brokerage CEO Dunamu Lee Seok-woo and current Bithumb owner Jeong-hoon Lee were also called in for an explanation. Samsung Life vice president Lee Seung-ho was also mentioned.
Earth Moon
The history of cryptocurrency Luna and its native stablecoin TerraUSD (UST) is quite tumultuous. In 2018, Do Kwon and Daniel Shin founded Terraform Labs. The duo launched the Terra blockchain in 2019.
After the coin collapsed in 2022, South Korea’s National Tax Agency fined Terraform Labs and Kwon $78.4 million in taxes. Local authorities soon tried to revoke Kwon’s passport and issued a warrant for his arrest.
Last week, Interpol issued a Red Notice against Kwon at the request of the South Korean government.
However, Kwon said he is not on the run and that the company is working with interested government agencies.
“We are in the process of defending ourselves in several jurisdictions – we have kept ourselves at an extremely high level of integrity and look forward to clarifying the truth in the coming months”he said.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
