Terra founder Do Kwon and co-founder Shin Hyun-seong of the failed cryptocurrency project are still waging a legal battle nearly two years after the network collapsed. This time, the network’s co-founders must contend with claims made by an insider who testified that both founders were aware of the project’s problems.
Insiders speak out about Terra’s founders.
In an interesting turn of events, an insider of the Terra project has come forward to testify against the co-founders of the failed Terra network in Korea. Local media Chosun reported the trial process of Shin Hyun-seong, co-founder of Terra and former CEO of Chai Corporation.
The identified insider is known to be Mr. Lee, who is in charge of developing the technology underlying the Terra project. According to Lee, he actually realized that there were legal issues with the project his co-founders were trying to build.
More specifically, the witness testified that they knew from the beginning that a payment network using Terra Luna and integrated with ChaiPay would be impossible to implement. Moreover, the witness stated that he actually knew from Terraform Labs founder Kwon Do-kwon himself that this was impossible.
As Lee explained, they knew that coin payments using the Terra network were not possible and that such payments could not be properly regulated. But they continued to develop the project, which could cost investors billions of dollars when the network eventually collapses in 2022.
Write a defense argument for testimony
Mr. Shin’s lawyers applauded Mr. Lee’s testimony, saying it was not true. According to them, the defendants did not know that it was impossible to make payments using the Terra network. Moreover, they claimed that none of the co-founders were aware of this and had never stated that they “didn’t think so.”
Shin Hyun-seong, better known as Daniel Shin, is currently on trial in Korea on several charges, including violation of the Capital Markets Act, violation of official duties, and embezzlement.
Terraform Labs founder Do-Kwon Kwon is currently imprisoned in Montenegro, and several extradition requests from the South Korean and US governments have so far been rejected. However, Kwon’s financial manager Han Chan-jun, who was arrested along with Do Kwon in Montenegro, was repatriated to Korea.
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