A revealing finding of legal documents could shed more light on what caused the dramatic Terra (LUNA) and TerraUSD (UST) price collapse.
Legal documents disclose the dissolution of two South Korean branches and the liquidation of the Terraform Labs Korea firm in the days leading up to the cryptocurrency collapse, which has been dubbed the “Lehman Brothers of crypto” by a number of people.
According to information collected from the country’s Supreme Court Registry Office and first revealed by South Korean news site Digital Today, Do Kwon effectively liquidated two branches and an entire firm.
Throughout a general shareholders meeting on the 30th of April, the Busan headquarters and the Seoul offices consented to be liquidated, with their dissolution taking place on the 4th and 6th of May.
The timeframe of these choices has sparked concern among cryptocurrency enthusiasts due to their possible link to the financial breakdown of Terra (LUNA) and the stablecoin TerraUSD (UST) on the 10th of May.
1/ We have published an amendment to Proposal 1623, incorporating the community’s feedback since its publication 2 days ago. Please see below for details 👇https://t.co/liISBn3Baa
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 20, 2022
Terra is now implementing a revitalization strategy based on the second amendment to the governance Proposal 1623 which if approved, will make the three following changes to the current system: reducing “future inflationary pressures” by increasing genesis liquidity from 15% to 30%, implementing a new liquidity profile for Terra (LUNA) holders prior to the crash, and reducing funds to TerraUSD (UST) holders after the crash happened.
Kwon proposed that a new network launch be scheduled for the 27th of May, by saying that the “$UST peg failure is Terra’s DAO hack moment – a chance to rise up anew from the ashes.”