Court Documents Reveal Do Kwon Disbanded Terraform Labs Korea Days Before LUNA Crash
An eye-opening discovery could provide further context to the catalyst for the infamous LUNA and UST price crash.๐
The dramatic story of the fall of Terra (LUNA) - referred to by some as the Lehman Brothers of the crypto space - has taken another major turn, as legal documents reveal the liquidation of two South Korean offices and the dissolution of the corporation. Terraform Labs Korea in the days leading up to the price crash of native Terra network tokens. Information obtained from the country's Supreme Court Registration Office, from which the South Korean media outlet Digital Today first appeared, highlights that Do Kwon asked to instigate the liquidation of two subsidiaries and an entire company. Both the Busan and Seoul headquarters were agreed to be dissolved during a general meeting of shareholders on April 30, with their appearance taking place on May 4 and May 6, respectively. The timing of these decisions has raised suspicions within the cryptocurrency community due to its potential coincidence with the events of the financial annihilation of Terra (LUNA) and the UST stablecoin in the early hours of May 10.๐ฆ
Terra is currently processing a reactivation plan based on the second amendment to governance proposal 1623. If approved, it will enact three revisions to the current system: increase genesis liquidity from 15% to 30% to "mitigate future inflationary pressures ", implement a novel liquidity profile for pre-attack LUNA holders and decrease funds to post-attack UST holders. In the proposal document, Kwon wrote that "the failure of UST parity is Terra's DAO time, it's an opportunity to rise from the ashes," with a launch of the new Terra network scheduled for May 27.
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