former developer Terraform Labs Mr. Lee testified on Monday: Dohyung Kwon According to local media, the company’s co-founder Hyunseung Shin promoted the TerraUSD stablecoin as a potential payment option to investors despite knowing that local regulations prohibited such an offer.
This testimony came from the Witness Examiner and the Chosun Ilbo in the third trial of eight former Terraform Labs members, including Mr. Shin. reported. Former developer Lee’s name has not been released due to South Korea’s privacy regulations.
next a disastrous collapse In connection with the 2022 Terra-Luna cryptocurrency project, South Korean prosecutors charged Kwon, Shin, and Terraform Labs with defrauding investors by falsely promoting that Terra’s USD-pegged stablecoin could be utilized as a means of payment.
However, Chief Shin claimed that the regulatory authorities at the time had not established a clear position on the use of cryptocurrency as a payment method. Shin also claims to have left Terra two years before the collapse, and he claims he had nothing to do with the incident.
Former developer Lee testified that Kwon told him that TerraUSD could not be used as a payment method due to Korean financial regulations, so Terra management appears to have been aware of the limitations of stablecoins. Mr. Shin’s lawyers refuted this testimony, saying it was false.
Meanwhile, former Terra CFO Han Chang-jun, a key associate of Chairman Kwon, Repatriated from Montenegro to Korea On Monday. According to local media, Mr. Han is scheduled to arrive in Seoul, Asia, on Tuesday afternoon and be questioned by local prosecutors. Aju Economy.
In March last year, Mr. Han and Mr. Kwon Arrested at Montenegro Airport Attempting to travel with forged documents. Mr. Kwon is detained in Montenegro, and local authorities are still considering whether to extradite him to South Korea or the United States.
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