UST Depeg Following
This indicator provides follow-up on the depg of Terra's stablecoin UST on May 8th. Terra's stablecoin UST briefly lost its peg to the U.S. dollar on May 8th, dipping as low as $0.985. The depeg event came after a series of multi-million dollar UST selloffs as one account traded about $85 million worth of UST for USDC on Curve Finance, while another user reportedly sold $108 million worth on Binance. UST posted a slight recovery shortly after Terraform Labs CEO Do Kwon posted a tweet calling out the stablecoin's critics.
Terraform Labs Sells Off More Than $450 Million of UST Before It Decouples
KingData News: Cryptocurrency researcher FatMan tweeted that new blockchain data reveals the root cause of the May UST depeg. In the 3 weeks leading up to the depeg, one entity dumped over $450m of UST on the open market. 4 days after their last sale, UST started collapsing. And that entity is Terraform Labs.
Korean Prosecutors Have Applied for Prior Arrest Warrants for Eight People, Including Terra Co-creator Daniel Shin
KingData News: According to Yonhap News Agency, Korean prosecutors applied for prior arrest warrants for eight people, including Terra co-founder Daniel Shin, on suspicion of violating fraud and malfeasance under the Act on Aggravated Punishment for Specified Economic Crimes, violating the Capital Market Act, and violating the Act on Restriction of Illegal Credit Practices. 4 of them were early investors in Terra Luna, and 4 others were key personnel in the development of Terra and Luna technologies, and all 8 stayed in Korea.
Korea Freezes Terra Cofounder Daniel Shin’s US$104M in Assets
KingData News: Korea’s Seoul Southern District Court approved local prosecutors’ request on Thursday to freeze some US$104 million in assets belonging to Terraform Labs cofounder Shin Hyun-seung, or Daniel Shin. Local authorities believed the assets were illegitimately earned through the LUNA cryptocurrency, local media reported.
Korean Prosecutors Say They Have Evidence of Do Kwon's Market Manipulation; Do Kwon Says It Will Explain Publicly
KingData News: South Korean prosecutors say they have obtained evidence that Terraform Labs CEO Do Kwon manipulated the price of virtual assets, leading to the collapse of TerraUSD and Luna, according to Edaily. The Joint Investigation Unit for Financial and Securities Crimes of the Seoul South District Prosecutor's Office said that the statute of limitations on Do Kwon's indictment has been suspended. Do Kwon is said to have moved to Europe via Dubai in September. Do Kwon tweeted, I will be holding a meeting to explain this and police officers from around the world are welcome to attend and for those who have been spreading lies on the taxpayers' dime, we will invite you as VIPs and will even pay for your airfare.
Crypto Lender Hodlnaut Lost Nearly $190 Million in TerraUSD Drop
KingData News: Embattled cryptocurrency lender Hodlnaut downplayed its exposure to the collapsed digital-token ecosystem created by fugitive Do Kwon yet suffered a near $190 million loss from the wipeout. The loss is among the findings of an interim judicial managers’ report seen by Bloomberg News. It is the first such report since a Singapore court in August granted Hodlnaut protection from creditors to come up with a recovery plan.
Terra CEO Do Kwon, wanted in South Korea, left Singapore and flew to parts unknown via Dubai
KingData News: Kwon Do-hyung, the cofounder and chief executive officer of Terraform Labs Pte. Ltd., also known as Do Kwon, left Singapore last month and landed in Dubai, United Arab Emirates, South Korean prosecutors confirmed with Forkast. An investigative team is weighing the likelihood of Dubai as a stopover for Kwon, as no records have been found of Kwon’s UAE entry at the airport. Local prosecutors and police have requested countries adjacent to Dubai help track Kwon’s whereabouts.
Investors form group to track down on the run Terra founder Do Kwon
KingData News: The UST Restitution Group (URG), comprising about 4,400 crypto investors, was formed to hunt down Kwon globally, with members already following active clues, Financial Times’ Song Jung-a reported on October 19. “Dubai is friendly to crypto, very international (he would not stand out), and has limited extradition treaties. It would seem like the best fit for the 3-5 hour timezone shift apparent in the data,” said a URG member. Despite Interpol’s involvement in the matter, some URG members accused the agency of ineffectiveness.
Terra Founder Do Kwon: Korean Prosecution Charges Not Legal and Not at Large
KingData News: In an interview on the crypto podcast Unchained, Terra founder Do Kwon said that the South Korean prosecution's charges against him for allegedly violating the Capital Markets Act were illegal and "politically motivated" and reiterated that he was not at large and had not seen a copy of the arrest warrant. As previously reported, in September, South Korean prosecutors issued arrest warrants for seven people involved in Terra, including its founder Do Kwon.
Do Kwon Passport to Expire on Oct. 19, Singapore Can Deport Him
KingData News: According to News1, the Joint Investigation Unit for Financial and Securities Crimes of the Ministry of Foreign Affairs and the Seoul South District Prosecutor's Office said that Terra founder Do Kwon's passport return order was announced on October 5 and that if he does not return his passport to the Ministry of Foreign Affairs or the passport agency or foreign embassy within 14 days of the announcement, his passport will lose its validity under Article 13 of the Korean Passport Act. This means that after October 19, Do Kwon's passport will lose its validity and become an illegal immigrant, and Singapore can deport Do Kwon.
Korean Prosecutors Issue Arrest Warrant for a Terraform Employee for Alleged Fraudulent Trading and Price Fixing
KingData News: Korean prosecutors have filed a warrant for the arrest of a Terraform Labs employee who was Do Kwon's main assistant on charges of fraudulent trading and price fixing, according to JTBC.
Terra Foundation LFG: Temporarily unable to compensate users affected by UST decoupling due to lawsuit issues
KingData News: Terra Foundation Luna Foundation Guard (LFG) tweeted that it is currently unable to distribute the remaining LFG funds to users affected by the UST decoupling due to ongoing and threatened litigation. The organization stated, "Unfortunately, due to ongoing and threatened litigation, distribution is not possible at this time. While these matters are outstanding, there can be no timeline established for resolution. Our goal remains to distribute LFG’s remaining assets to small UST holders." According to data from the report released by LFG, the Foundation currently has reserves totaling approximately $100 million, having previously committed to compensate holders with the smallest positions on a priority basis.
Crypto Fugitive Do Kwon’s Firm Accuses Korean Prosecutors of Overreach
KingData News: The firm behind failed cryptocurrencies TerraUSD and Luna accused South Korean prosecutors of overreaching their authority, two weeks after they issued a warrant for the arrest of its chief executive, Do Kwon. Terraform Labs Pte. Ltd. laid out Mr. Kwon’s defense in a statement sent to The Wall Street Journal on Wednesday. A spokesman for the Singapore-based firm said in the statement that Luna wasn’t legally a security, which would mean that it isn’t covered by South Korea’s capital-markets law.
Do Kwon: No such thing as "cashing out", haven't used OKX or Kucoin
KingData News: Do Kwon tweeted a denial to reports that "LFG wallet transferred 3,313 BTC after Korea issued an arrest warrant for Terra founder Do Kwon," stating that there was no such thing as "cashing out" and that I have not used Kucoin or okex for at least the last year, nor have TFL, Lfg or any other entity had their funds frozen. As previously reported by CoinDesk Korea, 3,313 BTC from the wallet address created by LFG on Binance was transferred shortly after the Korean prosecution issued an arrest warrant for Terra founder Do Kwon. LFG also denied the report in this morning's news.
Terra Foundation LFG: No new wallets have been created or Token holdings moved since May of this year
KingData News: The Terra Foundation Luna Foundation Guard (LFG) wallet issued a denial of the transfer of bitcoin, stating that LFG's wallet address is bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q and that LFG hasn’t created any new wallets or moved BTC or other tokens held by LFG since May 2022. In previous news, the LFG wallet moved some 3,313 bitcoins after South Korean prosecutors issued an arrest warrant for Terra founder Do Kwon.
Foreign media: Do Kwon Transferred 3313 BTC to Offshore Trading Platform after Being Wanted
KingData News: According to Coindesk Korea, shortly after Korean prosecutors issued an arrest warrant for Terra founder Do Kwon on September 14, 3,313 BTC from LFG's wallet address were transferred to two crypto trading platforms outside of Korea, including 1,959 BTC to OKX and 1,354 BTC to Kucoin, totaling about $6.59 million. The Korean prosecutors have frozen the BTC transferred to Kucoin and believe that Do Kwon is suspected of fleeing and laundering money. It is said that LFG is a non-profit consortium established by Do Kwon in January to defend the price (reserve) of LUNA (Terra), etc. It once owned 4 trillion won worth of BTC, but the exact details of its use cannot be confirmed.
Do Kwon: Does not see his name on Interpol's most wanted list
KingData News: In response to reports that Interpol had issued a Red Notice for Do Kwon, Do Kwon responded on Twitter, attaching the Interpol Red Notice website, saying that his name could not be found on the site. In addition, Do Kwon said he was writing code in his living room.
Korean Prosecutors Ask Interpol to Issue Red Notice for Do Kwon
KingData News: According to the Financial Times, Korean prosecutors asked Interpol to issue a red notice for Do Kwon and said Do Kwon refused to cooperate with the investigation into the collapse with UST, LUNA. The Seoul South District Prosecutor's Office said it has asked the Ministry of Foreign Affairs to cancel Do Kwon's Korean passport and has begun the process of placing him on the Interpol Red Notice and revoking his passport.
Terra’s Do Kwon May Be Trying to Escape Probes, Prosecutors Say
KingData News: Korean prosecutors raised the prospect that Do Kwon, the progenitor of a $60 billion cryptocurrency wipeout, is trying to evade redress over a meltdown that shook digital-asset markets worldwide. Kwon had moved from Korea to Singapore, where his now collapsed Terraform Labs project had a base, but the city-state says he’s no longer there. In previous news, South Korean prosecutors asked the Ministry of Foreign Affairs to impose administrative sanctions on five people, including Terra founder Do Kwon.
Korean Prosecutors Ask Foreign Ministry to Force Cancellation of Passports of Terra Founder Do Kwon and 5 Others
KingData News: Korea's Seoul South District Prosecutor's Office today asked the Ministry of Foreign Affairs to impose administrative sanctions on Terra founder Do Kwon and five others by forcibly canceling their passports, News1 reported. It is noted that under the country's passport law, among those for whom an arrest warrant has been issued, the issuance or replacement of a passport may be denied, or an order for its return may be issued to a person abroad. In previous news, South Korean prosecutors have issued arrest warrants for Terra founder Do Kwon and others.
Luna Briefly Falls Below $2.6, down 39.88% in 24H
KingData News: According to CoinMarketCap data, Luna briefly fell below $2.6, down 39.88% in 24H. In previous news, a South Korean court issued an arrest warrant for Terraform Labs co-founder Do Kwon, according to an exclusive report from Chosun Ilbo.
Korean Court Issues Arrest Warrant for Terra Founder Do Kwon
KingData News: A South Korean court has issued an arrest warrant for Do Kwon, the co-founder of Terraform Labs, now based in Singapore, and a core member of the company, mainly on charges of violating the Capital Markets Act, according to Chosun Ilbo. The arrest warrant is valid for one year, and the prosecution plans to pursue the arrest through measures such as Interpol Red Notices and passport invalidation.
Terra Founder Do Kwon Has Hired a Lawyer in Korea to Respond to the Korean Prosecution's Investigation
KingData News: According to Chosun Ilbo, Terra founder Do Kwon has hired a lawyer in Korea to respond to the country's prosecution investigation into him, and Do Kwon appears to have recently submitted a letter of appointment as a lawyer to the Seoul South District Prosecutor's Office, which is investigating the case. But Do Kwon said in a recent interview with Coinage that he never contacted the South Korean investigative authorities and had a hard time making a decision to return to Korea.
InsurAce Has Paid $12M in Claims to More Than 150 Insured Customers Following the UST De-anchoring Incident
KingData News: According to Cointelegraph, DeFi insurance agreement InsurAce has paid out $12 million in claims to more than 150 insured users in the wake of the UST de-anchoring incident, with 98 percent of claims approved.
Korean Prosecutors Are Discussing The Possibility of Cooperating with Interpol to Issue a Red Notice for Do Kwon's Extradition
KingData News: Korean prosecutors are discussing the possibility of cooperating with Interpol to issue a red notice for Do Kwon's extradition, according to Kyunghyang News. In previous news, Korean prosecutors issued a Do Kwon "Notice on Entry" in connection with the Terra collapse and banned other Terraform Labs executives from leaving the country.
Korea Prosecutor Issues Do Kwon "Notification Upon Entry" Notice
KingData News: Korean prosecutors have issued Do Kwon "Notification on Entry" notices on fraud charges related to the Terra and Luna crashes, as well as no-go notices for current and former executives, including Terraform Labs co-founder Shin Hyun-seong and former Vice President Kim Mo.
Korean Prosecutors Raid Terra Co-Founder Daniel Shin's Home: Report
KingData News: The home of Terraform Lab’s co-founder, Daniel Shin, in Seoul was raided by prosecutors on Wednesday, according to a local media report. The raid was conducted as part of a broader investigation over allegations that fraud caused the collapse of the TerraUSD (UST) stablecoin, the report said. Concurrently, prosecutors are also investigating allegations of tax evasion by Terraform Labs founder Do Kwon.
Terra Subsidiary Used as Funds Channel for Overseas Affiliates: Report
KingData News: Korean prosecutors have reportedly identified what is believed to be a Terraform Labs subsidiary in South Korea, FLEXE Corporation, which was allegedly used to facilitate cash flow from overseas to Terra affiliates, according to KBS News. Terraform Labs chief executive officer (CEO) Kwon Do-hyung, otherwise known as Do Kwon, is listed as the only internal director of FLEXE Corporation, according to KBS. Prosecutors have determined that 6 billion won (about $4.5 million) and 12 billion won (about $9 million) of the company's cash flow came from Terra's Singapore company.
In The Past 1 Hour Hodlnaut Has Repaid About 3M USDT on Compound
KingData News : According to PiperShield, the crypto-lending platform Hodlnaut has repaid about 3 million USDT on Compound in the past hour. Previously, according to Terra Research Forum member FatMan, Hodlnaut sent 171 million USTs to FTX on May 11, 2022. On-chain data shows that it may have transferred large amounts of money to Anchor in January without informing its customers and may have suffered tens of millions of dollars in losses in the UST de-anchoring incident.
Anonymous Vows to Bring Do Kwon’s ‘crimes’ to Light
KingData News : Hacktivist group Anonymous has pledged to “make sure” Terra co-founder Do Kwon is “brought to justice as soon as possible” in regards to the collapse of the Terra (LUNA) and TerraUSD (UST) ecosystems in May. The hacker group said it would be looking into Do Kwon’s actions since he entered the crypto space to expose his alleged crimes.
Singaporean Lending Platform Hodlnaut Moved a Large Amount of Funds to Anchor in January This Year Without Informing Its Customers
KingData News: Terra community researcher FatMan tweeted that Singaporean lending platform Hodlnaut moved a large amount of funds to Anchor in January this year without informing its customers, and that Dirty Bubble Media also posted that Hodlnaut may have incurred huge undisclosed losses as a result of the Terra collapse, after the company's founder said it would not stop withdrawing funds despite a $150 million outflow over the past two weeks. The company's founder has said that $150 million has been withdrawn in the past two weeks and that withdrawals will not stop despite the outflow of funds.
Terra Co-Founder Lost Nearly All His Wealth in Wipeout, WSJ Says
KingData News：Terraform Labs co-founder Do Kwon, whose crypto ecosystem collapsed in a $40 billion wipeout in May, told the Wall Street Journal that he lost almost all his net worth in the crash. “This doesn’t bother me,” he said in the interview with the Journal published Thursday. “I live a fairly frugal life.” Kwon told the newspaper he was probably a billionaire when the Luna token Terraform Labs backed was trading near $100. That coin is now trading at close to zero.
Do Kwon Has ‘Great Confidence’ in Rebuilding Terra Blockchain: WSJ
KingData News: Do Kwon, CEO of Terraform Labs, expressed confidence today in the latest efforts to rebuild the Terra blockchain following the collapse of its predecessor in May. Terraform Labs CEO Do Kwon told The Wall Street Journal in an interview published Wednesday that he has “great confidence” in the company’s ability to “build back even stronger" than before. Kwon’s proposal to relaunch the Terra blockchain and create a new token was passed in late May following majority votes among holders of Terraform Labs’ Luna governance token. The votes paved the way for the creation of the new blockchain called Terra, while the old version was renamed Terra Classic. “Many builders are in the process of relaunching their apps on the new chain,” Kwon said. Some in the crypto community have accused Kwon of running a sophisticated scam, as reported by the WSJ. Cory Klippstein, the CEO of Swan Bitcoin, called Kwon, as quoted by the WSJ, “a fraudster.” Kwon rejected that description, saying he made confident bets and statements on behalf of the UST because he “believed in its resilience and its value proposition.” “I’ve since lost these bets, but my actions 100% match my words,” Kwon added. “There is a difference between failing and running a fraud.” (The Block)
Do Kwon May Have an Address of 19,990,000 Luna
KingData News: According to Kyunghyang News Korea,an address holding 19.69 million LUNA tokens is either owned by Do Kwon, or is closely related to it.The number of tokens held by the wallet accounts for 2% of the total amount of LUNA, ranking third among all addresses, and can receive about 164,000 LUNA (about $328,000) in monthly pledge income.
A Core Designer of Terra Has Been Issued an Exit Ban
KingData News: The Seoul Joint Investigation Unit for Financial and Securities Crimes, which is in charge of investigating the Terra case, has recently issued an exit ban on A, the core designer of Terra, according to JTBC. In a previous interview with JTBC, he claimed that Do Kwon had privately sold other Tokens to institutions to raise large sums of money, and the prosecution is currently confirming whether the funds raised in this way were "market adjustments" that artificially inflated the price of the coin. The prosecution has reportedly begun a legal review to see if Do Kwon and others could be charged with fraud and violations of similar receiving practices laws.
Terra's Proposal of "Emergency Allocation Distribution Method
KingData News: Proposal 446, the Terra Community's "Emergency Allocation Distribution Method" has passed with 304 million votes in favor (88.36%), which will support the allocation plan outlined on Agora and plans to create a community committee of long-time Terra community members (Karma, Panterra0x, Cephii, Seb and GJ).
Binance.US Hit With Class-Action Lawsuit Accused of Misleading Investors Over Terra Incident
KingData News: Binance.US has been hit with a class-action lawsuit accused of misleading investors over the Terra incident, according to public lawsuit filings. The lawsuit, filed by U.S. law firm Roche Freedman LLP, accuses Binance.US of over-promoting Terra Eco Stablecoin UST, causing huge losses for investors. The lawsuit also alleges that Binance.US did not register as a broker-dealing platform because Binance.US listed USTs that could be identified as unregistered securities, a move that allegedly violated securities laws.
Korean Police: No Connection Between Employee Embezzlement and Do Kwon Has Been Confirmed
KingData News: On June 13, Yonhap News reported, South Korean police are investigating the embezzlement of bitcoin from company funds by an employee of LUNA issuer Terraform Labs. So far, no connection between the employee's embezzlement and Do Kwon has been confirmed, said Nam Yoo-joon, chief of the National Investigation Division of the South Korean National Police Agency, at a press conference today. The police also said they have asked the country's major virtual currency exchanges to freeze the funds involved. Commenting on media reports that the amount of embezzlement is more than 80 bitcoins and at least 3 billion won, Nam also said, "It is a virtual asset, so we have to keep an eye on the flow. Although the exchanges are domestic-related, most of them move through overseas exchanges, making it difficult to determine (the size) and continue to be analyzed." He added, "There could be additional (embezzlement) and we're looking at the overall flow."
Do Kwon and the Developers Had a War of Words
KingData News: On June 10, Do Kwon tweeted that there's a lot of misinformation and falsehood out there following depeg incident, and that he will be proactive in communicating with the press to provide right information. Do Kwon said, "There have been many hearsay reports about 'core developers' offering expert interviews about Terra's mechanisms. Open source development is transparent, and I would urge media to check if a single line of code by your "experts" has ever made it into production.” He said, "While TFL intends to continue supporting and building on the Terra 2.0 network, it is not by any means a "TFL-led" chain - we consciously bowed out of airdrop allocations and all the decisions are being made by various community groups, albeit in a rocky fashion." FatMan, a Terra community researcher, countered this, claiming that Do Kwon was lying. "TFL did not bow out of the airdrop - they only did so on their primary publicly-tracked wallets," he replied. In response to the code issue, FatMan claimed that Marco di Maggio, one of Anchor's core researchers, said in an interview with Financial Times that Terra's economic researchers created design and developers published codes, and that there was an obvious difference in-between. Previously, FatMan had revealed that TFL held over $200 million worth of LUNA and that Do Kwon used shadow wallets to manipulate governance. He also posted the addresses of four of TFL's associated wallets on Twitter.
Terraform Labs Loses US Appeal Over SEC Subpoena
KingData News: The U.S. Securities and Exchange Commission’s (SEC) serving of Terraform Labs CEO Do Kwon at the Mainnet Conference last year in New York was legitimate, and the company must cooperate with the commission’s investigation, the Court of Appeals for the Second Circuit has ruled. Kwon and Terraform Labs contested the validity of the subpoena, but lost the case in February and appealed. On appeal, the court found that the SEC followed its own rules on serving subpoenas, and Terraform Labs’ counsel was not authorized to receive subpoenas. The court also agreed that Kwon and Terraform Labs had enough ties to the U.S. because the company has employees based in the country and had previously indicated that 15% of users of its Mirror Protocol are located there. This lawsuit is unrelated to the recent collapse of the Terra ecosystem. Nor is it related to the criminal investigation into Kwon and Terraform Labs by South Korean authorities. (CoinDesk)
SEC Investigating Terraform Labs Regarding Market Promotion
KingData News: The U.S. Securities and Exchange Commission (SEC) is looking into whether Terraform Labs – the Singapore-registered firm that created the terraUSD (UST) stablecoin and luna (LUNA) token – violated U.S. laws regarding how it marketed the crypto coins, Bloomberg reported Thursday, citing a person familiar with the matter. (CoinDesk)
2ND U.S. Circuit Orders Terraform Labs and Do Kwon to Comply With SEC Subpoena
KingData News: The 2nd U.S. Circuit ordered Terraform Labs and its CEO Do Kwon to comply with SEC subpoenas. The SEC is investigating Terraform’s Mirror Protocol, which allows investors to create and trade digital assets pegged to U.S. securities prices. The SEC is seeking to determine whether Do Kwon or Terraform violated federal securities laws by creating, promoting, and selling digital assets.
SEC Finds Do Kwon Suspected of Money Laundering Months Before Terra’s Collapse
KingData News: The SEC found that in the months before Terra collapsed, about 100 billion won (about $80 million) of company funds per month were spent on operating expenses, suspected of being part of DO kwon’s money laundering. An in-house core builder claimed that "funds flowed into dozens of cryptocurrency wallets." If the allegations are proven, DO kwon will likely be punished under US law.
A Terraform Labs Employee Is Suspected of Stealing 80 Bitcoins Worth $2.4 Million During the Terra Crash
KingData News: On June 9, Yonhap News reported, a Terraform Labs employee is suspected of stealing 80 bitcoins (about $2.4 million) during the Terra crash, when LFG announced it was selling most of its bitcoin holdings, leaving just over 300. Police received the information and opened a case on May 18, and has required the domestic exchange to freeze the relevant funds. The police are now tracking the whereabouts of the employee while determining the extent of the embezzlement.
Terra 2.0 Community Has Started Voting on Proposed Distribution Method for 0.5% Emergency Luna
KingData News: On June 9, the Terra 2.0 community has initiated a vote on a proposal to allocate 0.5% of the contingency funds. The proposal is to allocate this LUNA funding to projects who launched on Terra Classic and achieved product-market fit and TVL, projects that achieved product-market fit but have no measurable TVL and projects that have not yet achieved product-market fit, and to allocate 2.5 million LUNA, 1 million LUNA and 1.5 million LUNA to each of these categories. In addition, the proposal suggests a board of directors to be set up, formed by some long-time members of the Terra community, to oversee the allocation process.
Terraform Labs Co-Founder Denies Accusations of Fraud
KingData News: Terraform Labs co-founder Daniel Shin recently told the Financial Times that the company wasn’t aware of “any flaws” in the blockchain’s algorithm. Shin, one of the most renowned tech entrepreneurs in South Korea, dismissed accusations of fraud, claiming that there was no intention of deceiving users. According to USA Today, the Seoul Metropolitan Police Department has recently launched an investigation into possible corruption of Terraform Labs. (u.today)