Do Kwon Reportedly Dissolved Terraform Labs Korea Days Before Fallout

Do Kwon Liquidated Terraform Labs Before Crash

According to a report from the local media outlet, Digital Today, the information was obtained from the country’s Supreme Court Registry Office highlighting that Do Kwon liquidated two branches and an entire company.

Both the Busan headquarters and the Seoul offices were slated for dissolution during a general shareholders meeting on April 30, with their demise accounted for on May 4 and May 6, respectively. The company named CEO Kwon Do-hyeong, the full name of Do Kwon, as the liquidator.

While Terraform Labs is a Singapore-incorporated company, it was registered to conduct business in South Korea as Terraform Labs Korea, with headquarters in Busan and a branch in Seongdong District in eastern Seoul.

Timings of the Dissolution Raises Suspicions

The timing of these decisions has raised suspicions within the crypto community due to their potential correlation to the events following the collapse of Terra’s LUNA and UST stablecoin during the early hours of May 10.

On May 9, UST lost its peg to the U.S. dollar and its price kept falling. At the time of writing, it is trading at about $0.05. LUNA also sharply fell from above $80 on April 30 to $0.00011023 at the time of writing.