Terra’s worries associated with the failed stable coin and cryptocurrency due to the market crash increasing day by day.
The market crash that happened in May, washed out billions of dollars of investors from the market and also made sure that most of the cryptocurrencies and stablecoins lost their value by more than 60%. In the market crash, the most affected stablecoin and cryptocurrency were from Terraform Labs.
Terra’s stablecoin UST and its sister cryptocurrency Luna lost almost 99% of their value and de pegged to below $1. According to some of the crypto experts, the affect of the market crash was overwhelming only due to the steep fall of Terra’s stablecoin and cryptocurrency.
Do Kwon in a series of lawsuits.
Do Kwon, who is the CEO of Terraform Labs is in a series of lawsuits if the reports are to be believed. His actions during the market crash have been put under scrutiny. His comments which were made hilariously made headlines for all the wrong reasons. Do Kwon is also facing charges for evading tax. Allegedly, a total of $78 million worth tax evasion has been processed under Do Kwon’s guidance. Kwon also went on to rubbish the allegations and made the statement that, the company does not have any outstanding tax liabilities in the country.
Terra’s developers and professionals asked to not leave the country.
In the recent reports, the headline stated that, Korean government has prohibited Terra’s developers to leave the country. Prosecutors in Korea went ahead and announced about the prohibition of the developers to leave the country.
The purpose of the travel ban, according to the Financial and Securities Crime Joint Investigation Team, is to keep anybody involved in the case from leaving the country. This measure could also be a precursor to further investigative actions such as search warrants and seizures, as well as subpoenas for other people implicated.
Developers dissatisfied by the action from government.
Daniel Hong, a former Terra developer, said on Twitter that he and other developers had not been informed of the travel ban. “To be honest, treating people like this as possible criminals is completely absurd and unacceptable,” he said.
The market avalanche caused a lot of issues for investors, companies and institutions dealing in the market. Terra was no different. But, the involvement of Korean government and the suspicion behind Do Kwon’s activities in the company surely suggest that the narrative is not moving in the right direction.