The breakdown of price of Terra’s LUNA and algorithmic stablecoin TerraUSD (UST) has created a shock in the whole crypto market all around the globe. Many common people and financial backers experienced some serious misfortunes when $40 billion in LUNA and UST’s price went down within a time span of a few days. Do Kwon, CEO of Terraform Labs, is surrounded by all the bitterness and also some legal issues started encompassing him. Looks like a lot of trouble is waiting for him and it’s a difficult time of his life.
The crypto market experienced the first crypto bank run in history just recently when both Terra’s LUNA and UST prices crashed, clearing out around $39.2 billion in market within a few days. UST, Terra’s algorithmic stablecoin, experienced a de-peg, losing its $1 equality. Moreover, Terra’s token LUNA dove from $77 to $0.000001 which was a very shocking experience for the investors.
While these things were going on, another news came out just recently that the US Securities and Exchange Commission found Terraform Lab’s pioneer Do Kwon involved in some money laundering activities, getting the company in even more trouble.The agency has likewise started a probe into Terraform Labs’ token Luna’s unexpected crash
A South Korean news organization and the South Korean Television network had prior revealed that something seems very fishy at Terraform Labs however nobody paid attention to it and thus this situation that we all are facing right now occurred.
The Securities and Exchange Commission of the United States has allegedly uncovered proof of illegal activities against Do Kwon. The proof features 100 billion Won ( which is around $80 million) from the monthly expenses of the company that were distributed between numerous crypto wallets. The assets were moved a couple of months before Terra crashed.
Moreover, Do Kwon is under investigation by the Securities and Exchange Commission for purportedly disregarding the Securities Act by utilizing a blockchain service to make it simpler to get US securities through Terra.
Do Kwon apparently looks like he is avoiding these rumors as they simply add to the aggravation of every individual who has lost his investment. But the crypto market has turn out to be quite unforgiving since the Terra crash which brought about misfortunes worth $40 billion. Do Kwon and his team’s mishandling has been called out by many crypto experts. However, the latest rumors about money withdrawal just before the crash has increased the mass probe towards him.
As per the Korean National Tax Service, Do Kwon is as of now being scrutinized for tax avoidance after LUNA and UST crashed due to a corporate and personal taxation rate of $78.4 million. Korean media’s DigitalToday has acquired archives from the South Korean Supreme Court Registry Office that uncover Kwon chose to break down Terra’s Seoul and Busan branches during its general meetings that took place on April 30. Following the decision of Do Kwon, the Busan branch was liquidated on May 4 and similarly the Seoul branch on May 5. So, let’s just wait and watch how this case will turn out in the future.