The development team warned early that “it will crash”! Do Kwon was exposed to forcibly push UST despite opposition
According to the Korean media “JBTC”, South Korean prosecutors have launched a comprehensive investigation into the recent Terra crash to clarify whether there are human factors or currency price manipulation.
The report pointed out that the Seoul Southern District Prosecutor’s Office and the joint financial and securities crime investigation team subpoenaed all employees of Terra developer Terraform Labs and collected relevant evidence.
A former employee who participated in the initial development of the LUNA and Terra ecosystems in 2019 pointed out that from the beginning, some team members expressed doubts about the design of the TerraUSD (UST) stablecoin, but the founder Do Kwon insisted on disregarding the objections of his subordinates. Launch the token. The employee said:
Even though the team had warned at the time that it “could crash at any time,” Do Kwon forcibly launched the token.
The employee revealed that the reason why developers objected to the launch of LUNA and Terra was because the test model had already failed in the pilot phase within the company. In addition, it was pointed out at the time that:
If it pays investors tens of percentage points in interest in the absence of a stable collateralized asset or profit model, there might be a swarm at first, but at some point it has to crash because it can no longer Unable to withstand price fluctuations, and unable to pay interest.
Prosecutors are now investigating whether Do Kwon was aware of these design flaws early on, as well as potential price manipulation and whether South Korean cryptocurrency exchanges followed proper listing audits before listing UST and LUNA tokens. program.