South Korean lawmakers have reportedly summoned Terra (CRYPTO: LUNA) founder Do Kwon to appear before Congress and testify on the subject of TerraUSD’s (CRYPTO: UST) collapse.
What Happened: According to a report from local publication Newspim, Rep. Yoon Chang-hyeon of the People’s Power Party addressed the issue at a plenary meeting of the National Assembly's Political Affairs Committee on Tuesday.
He also raised questions as to the behavior of South Korean cryptocurrency exchanges and their failure to halt trading during the crash. The country’s leading cryptocurrency exchange, Bithumb, reportedly made as much as 10 billion won or $7.8 million from trading fees after the crash.
Related Link: Do Kwon Proposes Terra Hard Fork, Airdrop To TerraUSD, LUNA Holders
"We should bring related exchange officials, including CEO Kwon Do-hyung of Luna, which has become a recent problem, to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors," said Yoon.
The upcoming legal proceedings couldn’t come at a worse time for Kwon and Terraform Labs, the entity behind the Terra blockchain.
A Tuesday report from The Block revealed that Terra’s in-house legal team had resigned following the collapse of UST.
“The past week has been challenging for Terraform Labs, and a small number of team members resigned in recent days,” a Terra spokesperson told The Block.
See Also: IS TERRA (LUNA) DEAD?
UST and LUNA's collapse coincided with bearish macroeconomic factors and resulted in a significant market-wide crash led by Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH); the majority of investor outrage was directed at Do Kwon. Last week, the Terra founder requested “emergency protection” from police after an intruder broke into his apartment premises.
A governance proposal to fork the Terra blockchain is currently being deliberated by the community.
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