Former Terra developer testified against Do Kwon in South Korean court
Lee, a former Terraform Labs developer, stated that the co-founders of the company, Kwon Do Hyun and Shin Hyun Son, deliberately promoted the TerraUSD stablecoin among investors as a means of payment, despite the fact that local regulations prohibit it.
After the collapse of the Terra-Luna crypto project in 2022, South Korean prosecutors accused Kwon, Shin and Terraform Labs of deceiving investors by falsely claiming that the Terra stablecoin, pegged to the US dollar, could be used to make payments.
Shin, in turn, claims that at that time the regulatory authorities had not developed a clear position on the use of cryptocurrency as a payment method. He also said that he left the company two years before the collapse, thereby emphasizing that he had nothing to do with what happened.
Meanwhile, former Terra CFO Han Chang Joon, a key partner of Kwon, was extradited from Montenegro to South Korea. He is due to fly to Seoul today, after which local prosecutors will take over him tightly.
