Terra’s Do Kwon Could be Summoned to Testify to Korean Authorities on UST-LUNA Fiasco (Report)

Do Kwon, perhaps the most notorious name in the cryptocurrency industry in the past few weeks, might have to appear in front of the South Korean government in a hearing on the UST crash.

• According to the local report, Yun Chang-hyun, a rep from the nation’s ruling People Power Party, has requested a parliamentary hearing on everything that transpired with TerraUSD (UST), its collapse, and the actions undertaken by some of the largest local crypto exchanges.
• As previously summarized, the Terra drama began when UST, the project’s algorithmic stablecoin supposed to be pegged 1:1 with the USD, lost parity against the greenback.
• The token’s value plummeted to a low of $0.04 in the following week or so. The other native token – Luna – also slumped in value because users were able to profit by arbitraging it against UST.
• The South Korean politician outlined the damage this deterioration caused to local investors and wanted Do Kwon to appear in front of the country’s parliament. At the same time, Kwon is trying to find a solution, with his latest proposal being a hard fork.
• However, Chang-hyun also touched upon the role that the nation’s largest crypto exchanges played, asserting that Coinone and Korbit halted UST trading on May 10, Bithumb on May 11, but Upbit didn’t follow suit for two more days.
• Consequently, he wants executives from these exchanges to appear in the hearing as well.