South Korean lawmaker suggests summoning Do Kwon to the national assembly

Yun Chang-hyeon, a lawmaker successful South Korea’s ruling party, People’s Power, has suggested summoning Terraform Labs’ laminitis Do Kwon to a parliamentary hearing. A report unveiled this quality today, noting that the legislators program to summon Kwon implicit the illness of the firm’s stablecoin and crypto projects.

The company’s TerraUSD (UST) and Terra (LUNA) projects precocious crashed, losing astir $39 cardinal of their worth successful nether a week. Before this, some coins had a valuation of implicit $40 billion. As a effect of this abrupt crash, investors lamented attracting the attraction of aggregate authorities regulators, which called for much regularisation successful the nascent plus class.

Per Chang-hyeon,

“There is simply a portion that raises questions astir the behaviour of exchanges during the crash. Coinone, Korbit, and Gopax stopped trading connected May 10, Bithumb connected May 11 We stopped trading daily, but Upbit did not halt trading until May 13.”

Chang-hyeon added that the clang of LUNA and UST accrued Upbit’s trading volume, seeing arsenic the speech was the past to halt UST and LUNA contempt the crash. The lawmaker added that the speech controls astir 80% of South Korea’s crypto trading volume. As a result, Upbit made astir 10 cardinal won ($0.0079 billion) successful commissions.

Emphasizing the value of summoning Do Kwon to parliament, Chang-hyeon said,

“As the authorities is delayed, investors’ losses are increasing. The authorities proceed to spot the immense nonaccomplishment of integer assets arsenic helpless. We should bring related speech officials, including CEO Kwon Do-hyung of Luna, which has go a caller problem, to the National Assembly to clasp a proceeding connected the origin of the concern and measures to support investors.”

Do Kwon seeks information pursuing the crash

This quality comes aft Do Kwon suggested a solution that would alteration the Terra ecosystem to get backmost connected its feet aft LUNA’s and UST’s implosion. His solution progressive endorsing the assemblage connection 1164, which would let Terraform Labs to summation UST’s basal excavation from $50 cardinal to $100 cardinal SDR.

Additionally, Do Kwon proposed forking LUNA to a caller concatenation to reimburse the ecosystem’s users, who mislaid hefty sums of wealth aft the collapse.

The caller concatenation would person a headdress of 1 cardinal coins. Out of the 1 cardinal coins, 400 cardinal would spell to LUNA HODLers and 400 cardinal to UST HODLers earlier the de-pegging event. After the last infinitesimal of the Terra concatenation halt, Do Kwon projected offering 100 cardinal coins to LUNA holders and 100 cardinal coins to a assemblage pool.

However, these solutions did not fulfill the Terra community. Do Kwon soon revealed that helium feared for his information pursuing a break-in astatine his flat successful the Seongsu-dong territory of Seoul.