Insider Testifies Against Terra Founders
Terra founder Do Kwon and co-founder Shin Hyun-Seong are facing legal battles two years after the collapse of their crypto project. An insider, identified as “Lee,” testified against the co-founders in a South Korean court.
Lee, who worked on developing the technology for Terra, claimed that he realized early on that there were legal issues with the project. He testified that he knew the proposed payments network using Terra Luna and ChaiPay would be impossible to implement.
Lee also stated that Terraform Labs founder Do Kwon himself confirmed that coin payments using the Terra network were not viable and could not be properly regulated. Despite this knowledge, the project was developed, leading to billions of dollars in losses when the network crashed in 2022.
Defense Against the Testimony
Shin’s lawyers denied the allegations, stating that the defendant was not aware of the impossibility of using the Terra network for payments. They argued that none of the co-founders ever vocalized such knowledge.
Ongoing Legal Proceedings
Shin Hyun-Seong is currently on trial in South Korea for violating the Capital Markets Act and other charges. Do Kwon remains in jail in Montenegro, with extradition requests from South Korea and the US rejected. However, Kwon’s finance officer, Han Chan-joon, has been extradited to South Korea.