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Do Kwon De-registered His Company Right Before Terra Luna And UST Tanked?
Terra Luna is still in the headlines for all the bad reasons. After experiencing a massive price crash that wiped out over 95% of its value within weeks, the crypto is still struggling to keep up appearances in the charts. However, the Terra team, led by one Do Kwon, is now facing a huge backlash from the crypto community.
According to Leaked documents, published by DigitalToday, Do Kwon dissolved Terraform Labs just days before Terra Luna and UST experienced a market crash. This leakage has sent shivers across the Terra community and the crypto industry at large. No one really thought that Do Kwon could have done this. Even more interesting is the fact that he didn’t tell the community about it.
Was This A Rug Pull?
Further details of the leak have been published in a Reddit post with more information about the documents involved in the dissolution of Terraform Labs in South Korea. Terraform is the creator company of TerraUSD (UST).
According to the documents exposed, Do Kwon filed an application to dissolve the company on April 30. On May 4th, the application went through and Terraform Labs ceased its status as an entity in South Korea. However, Do Kwon moved the company to Singapore but did not bother to get it licensed there.
More details emerging reveal that Do Kwon, through the Terra Foundation, transferred 52,189 BTC to the Gemini crypto exchange. He also transferred another 28,205 BTC to Binance. The coins transferred had a combined value of $2 billion and were kept as reserve backing to shore up the price of LUNA and UST in case of a crash.
The community is now wondering whether these coins were really used for their intended purpose or if their transfer was designed to fleece the Terra community under a false guise.
Terra Luna’s Crash Has Given Crypto A Bad Name
Luna’s crash, along with its sister stablecoin, UST, has prompted many in the industry to question the strength of various crypto to withstand hard market shifts.
Even more, the exposed chronological order of events involving Do Kwon has put the crypto industry in a bad light. Many crypto opponents have long viewed the industry as an economic terror ground rife with scams and rug pulls.
At the time of this writing, Terra Luna is still in trouble prices. The coin is trading at $0.00017 and occupying position 212 in the charts.