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Terraform Labs Korea was dissolved by Do Kwon just days before the LUNA crash, according to court documents

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By , Updated On May 24, 2022

There could be a new context provided by legal documents found in connection with the infamous Terra (LUNA) and TerraUSD (UST) price crash.

 

Also read: Will Terra (LUNA) and TerraUSD (UST) recover again after getting dumped almost 100%? Experts Say

 

Before the multi-currency crash, legal documents reveal that two South Korean offices were liquidated, and Terraform Labs Korea Corporation was dissolved. Many people consider Terra (LUNA) the Lehman Brothers of crypto.

Digital Today in South Korea reported on Terra’s story first. Do Kwon successfully liquidated two branches and an entire company, according to information gathered from the country’s Supreme Court Registry Office.

Information first reported by South Korean news outlet Digital Today highlights that Do Kwon was successful in liquidating two branches and an entire company with the help of the Supreme Court Registry Office.

During the general shareholders meeting on April 30, it was decided that both the Busan HQ and the Seoul offices would be dissolved, respectively, on May 4 and May 6.

Crypto community members are concerned about the timing of these significant decisions as they are likely to be related to the events causing the financial collapse of the Terra coin and UST stable coin on May 10 in the early morning hours.

 

Also read: 3 Reasons Behind The Crypto Market Crash – and Experts Forecast More Pain Ahead

 

Following the second amendment of Proposal 1623, Terra is currently developing a revival plan. According to the proposal, three changes will be made to the current system:

  • To combat inflationary pressures in the future, genesis liquidity was raised from 15% to 30%.
  • Implementing a novel liquidity profile for pre-attack LUNA holders.
  • Decreasing post-attack UST funds.  

 

A proposed new network launch is set for May 27. According to Kwon, the $UST peg failure is Terra’s DAO hack moment – a chance to emerge from the ashes in a new way.  

Also read: Terra’s Co-founder Officially Announced The Hard Forking Terra (LUNA) To Preserve The Terra Ecosystem