Terra: South Korea demands investigation of Do Kwon

South Korea’s ruling party representative, Yun Chang-hyun, called for a parliamentary hearing on TerraUSD (UST). Sudden collapse of stablecoin Last week was the cause of this decision. Yun Chang-Hyun hopes that Terraform Labs CEO Do Kwon will attend the hearing. Another report is Financial regulators have launched “emergency inspections” With local crypto exchange.

Investigation to avoid Terra’s crisis

Terra’s crisis began on May 7.That day, UST, the algorithm stablecoin of the Terra blockchain, Lose equivalence with the US dollar.. In the next few days, UST was completely destroyed. Terra’s native token Luna has also fallen and is now trading at a fraction of a penny. Lose almost all value.. A representative of the South Korean government has decided to take action.

“We should bring in crypto exchange staff To parliament to hold hearings on the causes of the situation and measures to protect investors.. Includes Terra CEO Dokwon, who has recently become a problem. »»

Korean ruling party representative Yoon Chang-hyun

A professional financial crime unit is tasked with investigating the collapse of major cryptocurrencies on the Terra blockchain. Thereby, Dokwon is expected to face heavy tax fines.. This group of financial services committee and financial supervisory service prosecutors and employees investigates the methods Terraform Labs uses to attract investors.

A representative of the South Korean ruling party called for a parliamentary hearing about Terra and its CEO Do Kwon.

Unit accuracy and clinical approach nicknamed the unit “Yeouido Grim Reaper”.. The unit will resume service to investigate Terra after it disbanded two years ago.Korean tax authorities are also preparing Fine of 100 billion won To the Luna Foundation Guard.

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Cryptographic exchange to be investigated

Yun Chang-hyun Cryptographic exchange Report the behavior at the time of the crash.

“Coinone, Korbit and Gopax closed trading on May 10th, Bithumb closed trading on May 11th, but Upbit closed trading only on May 13th (…) Crash Upbit, which was the last to stop trading after seeing it, has an 80% share. In just three days, she earned a commission of about 10 billion won ($ 7.8 million).

Korean ruling party representative Yoon Chang-hyun

Yonhap News Agency reported on Tuesday that local financial regulators have launched an “emergency inspection.” Strengthen investor protection After the collapse of UST.

I couldn’t escape the notifications of the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS). The two entities would have asked the exchange to share Information about transactions related to UST and Luna.. They also asked them about their trading volume and the number of investors involved. The two regulators would also have asked the exchange to provide countermeasures against the UST crash and an analysis of the cause that caused it.

After the crash of Terra, the exchange is also in the sight of the authorities.

“Last week, financial authorities requested transaction amounts and investor data and evaluated the exchange’s relevant measures (…) to develop measures to minimize damage to future investors. I think I went. »»

Anonymous manager of local crypto exchange

A fork to save Terra?

Despite the crisis, Terraform Labs, the company behind Terra, wants to regain public trust after the collapse.Do Kwon on Monday Reboot the Terra network with the new blockchain because “Terra is more than UST”..

“We encourage Terra developers to signal support and promise to build a fork on the public blockchain as soon as possible. »»

Do Kwon, CEO of Terraform Labs

Some Terra investors are beginning to show support for Terra forks. For example, SuZhu of Three Arrows Capital tweeted: “Soon Terra2”..However, the proposal submitted to the governance vote on May 18 is Not everyone’s favorite.. In fact, Binance CEO Changpeng Zhao said he didn’t think the Terra fork would work. It will not bring value..

Do Kwon is not his first attempt Stablecoin Algorithm that collapses. in fact, He would have created a basis cash that had the same fate as UST a few years ago...

Will Terra stand up from that ashes? No one knows how this tragic event will end. Start by making sure you evolve in a safe environment. This allows you to develop a solid investment strategy. Register with the FTX Reference Cryptographic Exchange Platform without delay Benefit from a lifetime discount on transaction fees (see affiliate links, terms on the official website).