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Do Kwon might be the reason why Terra is in shambles recently
A crash in the Terra price has got investors fleeing the market to protect whatever remains of profits they have gathered over the years. The fall has mind-boggled crypto investors across the world sparking caution all over the economic and financial markets. Even though at the current stage, some of the most critical cryptocurrencies in the world are gaining back their lost dominance, the volatility still persists as uncertainties linger around the Terra ecosystem. But Terra’s free-fall into oblivion has not only raised questions about the crypto’s future and its relevance but has also made government organizations question the very intentions of the Terra Founder, and his plans to recover the crypto’s value.
According to reports, Do Kwon dissolved Terraforms Labs on April 30, just days before Terra and UST fell exponentially. Based on some of the leaked documents that are in the custody of South Korea’s supreme court registry office, the decision to close the firm was decided by a group of shareholders who held a meeting on April 30. Besides this, Kwon has also been charged with possible tax evasion by the South Korean authorities. A law company has even decided to file a lawsuit against the Terra founder in order to take hold of his assets.
The South Korean news source Digital Today obtained the information from the country’s Supreme Court Registry Office that Do Kwon successfully initiated the liquidation of two branches and an entire company. Reportedly, both Busan headquarters and Seoul offices were set up for dissolution at the general shareholders meeting on April 30, 2022. Basically, the timings of these decisions and incidents are raising suspicions within the industry that these incidents are correlated to the final event that led to the sudden fall of the Terra LUNA and UST stable coin.
Allegations on Do Kwon’s are on the Rise
Not just that the Terra Founder has risen suspicions around him to gain profits himself, after dragging his investors to the ground, but he has also reportedly evaded his taxes. He was being ordered by South Korea’s National Tax Service to pay 100 billion Won, which is nearly US$78 million, just days after Terra’s legal team resigned their positions. The CEO of the firm has also been caught in heavy disregard since the LUNA network degenerated. Do Kwon has been constantly initiating plans to regain the lost glory of the Terra platforms, meanwhile, he has been dodging his government and income tax.
Currently, LUNA is in the process of processing a revival plan, but it is quite difficult to anticipate if those plans will work because, after these allegations against the Founder of a popular cryptocurrency like Terra, it is quite evident that it will take time for the investors to trust again on this investment asset. Several of Kwon’s plans have been rejected by the LUNA community, and it is only a matter of time before the crypto will disappear from the market, probably because of the founder’s mistakes!