New court documents show that Terraform Labs Korea and two other South Korean offices were successfully liquidated just days before the Terra ecosystem collapsed.
Did Do Kwon Know The Crash Was Coming?
Information pulled from the South Korean Supreme Court Registry Office shows that Do Kwon initiated the dissolution of a whole company as well as two subsidiaries. After having a meeting on April 30, shareholders had agreed to liquidate the Busan headquarters and Seoul branch. The liquidation was finalised on May 4 and 5, respectively, with Do Kwon being appointed as liquidator.
Though correlation does not imply causation, the timing is suspicious given that both the TerraUSD (UST) and its companion token LUNA experienced a tragic fall on May 10. Some observers speculated that Kwon’s decision to dissolve companies in the days preceding the crash was a strategy to avoid responsibility for the aftermath. In other words, the CEO of Terraform Labs appears to have been aware that something was about to happen.
After the crash, Kwon remained silent for a few days before making a statement about how he planned to deal with his currencies’ sudden demise. He recently proposed forking Terra without UST, renaming the current chain “Terra Classic.”
The majority of Terra community members prefer a burn mechanism over a hard fork. Binance CEO Changpeng Zhao, a Terra early investor, is also opposed to forking LUNA’s blockchain. He isn’t convinced that a fork can save Terra’s beleaguered ecosystem. However, if Kwon’s proposal is approved, the new network will launch on May 27.
Meanwhile, a slew of civil and criminal proceedings have been filed against Kwon by investors who have been financially harmed by the collapse of UST and LUNA.