NewsletterBreaking: S.Korea Govt Plans To Summon Do Kwon Over Terra Crash
The South Korean Government is reportedly planning to summon Terra founder Do Kwon for a parliamentary hearing over the Terra crash.
The move comes after Terra’s value imploded from over $40 billion to barely $1 billion in the span of a week. The crash sparked outrage among investors, and also saw several governments calling for more regulation over crypto.
S. Korean Lawmaker calls out Do Kwon over Terra
As per reports, South Korean politician Yoon Chang-Hyeon raised the necessary question over the recent Terra crash in a plenary meeting. He pointed out the uncertain behavior of the crypto exchange platforms during the crash. The major Korean exchanges like Coinone, Korbit, and Gopax halted their trading of UST and LUNA on May 10, while Bithumb and Upbit did it on May 11 and May 13, respectively.
Yoon mentioned calling crypto exchange officials and Do Kwon to investigate the cause behind the historic crash. However, he also raised the point to build measures to protect investors.
Terra’s stablecoin UST used to hold a market capitalisation of over $18 Billion. UST which was mean to be pegged by the dollar value is now trading at an average price of $0.124. After the huge crash, its valuation has come down to $1.4 Billion.
Are Crypto exchanges involved in recent crash?
Yoon mentioned that every trade in the market helps the platform to generate commission from them. During the market crash, Upbit was the last platform to halt the trading for LUNA. The exchange went on to become the topmost company in generating commission income with 80% of the share. He raised a voice for strict legislation over the crypto market as the investors are facing huge losses due to its nonbeing.
South Korea’s financial authorities have already begun an investigation against crypto exchanges. The Financial Supervisory Service (FSS) and the Financial Services Commission (FSC) have asked the exchanges to provide the details regarding UST and Luna transactions. The report will also include the trading volumes with the number of investors and their closing prices.
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