Documents Show Do Kwon Dissolved Terraform Labs Before UST and LUNA Collapse

According to the South Korean news outlet Digital Today, the founder of Terraform Labs, Do Kwon has apparently closed down two of its branches days before the demise of Terra (LUNA) and the stablecoin TerraUSD (UST).

On April 30, at the general shareholders meeting, Terraform Labs decided to announce that the company is dissolving its Seoul branch and Busan headquarters.

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On top of that, Terra is presently implementing a revitalization strategy based on the second amendment of Governance Proposal 1623. Terra stated in one of its tweets:

Back in 2018, Do Kwon established Terraform Labs with Ticket Monster founder Shin Hyun-sung. However, on March 2, 2020, Hyun-sung resigned, leaving Kwon as Terraform Lab's CEO.

On May 9, UST continued plummeting in value and lost its peg to the US dollar. As of now, it is trading at roughly $0.08.

However, Do Kwon reassured crypto traders that Terra Labs has a plan to save Terra. To do so, the CEO implied that the minting capacity would be increased from $300 million to $1.2 billion.

Earlier this month, the co-founder of Terra (LUNA), Do Kwon, was also issued a $78 million fine for avoiding taxes as he did not approve of the way cryptocurrency taxes were handled in the country.