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According to local media reports, a former developer named Lee from Terraform Labs testified on Monday, alleging that the company's co-founders, Kwon Do-hyeong and Shin Hyun-seung, promoted TerraUSD stablecoin to investors as a potential payment option, despite knowing that local regulations prohibited such issuance. The testimony was provided during the third trial of eight former members of Terraform Labs, including Shin, who were questioned as witnesses, as reported by the local news outlet "Chosun Ilbo." Due to privacy regulations in South Korea, the full name of the former developer Lee was not disclosed. After the catastrophic collapse of the Terra Luna cryptocurrency project in 2022, South Korean prosecutors accused Kwon, Shin, and Terraform Labs of defrauding investors through false advertising of Terra's USD-pegged stablecoin as a means of payment, among other methods. However, Shin argued at the time that regulatory agencies had not established a clear position on the use of cryptocurrencies as a means of payment. Shin also claimed to have left Terra two years before the collapse, asserting that he was not involved in the collapse. According to reports, former developer Lee testified that Kwon stated that South Korean financial regulations prohibited the use of TerraUSD as a means of payment, indicating that Terra executives were aware of the limitations of the stablecoin. In response, Shin's defense team refuted such testimony as false. Meanwhile, former Terra CFO Han Chang-joon (Kwon's main partner) was extradited from Montenegro to South Korea on Monday. According to the local news outlet Aju Business Daily, Han is expected to arrive in Seoul, Asia, on Tuesday afternoon, where he will face an investigation by local prosecutors. In March of last year, Han and Kwon were arrested at the Montenegro airport for attempting to carry forged documents. Kwon remains detained in Montenegro as local authorities consider whether to extradite him to South Korea or the United States. Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is the majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently, providing objective, impactful, and timely information about the cryptocurrency industry. Below is our current financial disclosure. |
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Post time 19-2-2024 20:48:34