- May 27, 2022
Crypto summary: “Documents commit Do Kwon for the dissolution of Terraform days before the collapse of LUNA”
In today’s post, we present you, a brief review of what were the most outstanding crypto news of the week, so you don’t miss any details. Probably, the most important information is: “Documents reveal that Do Kwon dissolved Terraform Labs Korea days before the MOON crash.”
As usual, for this summary, the 6 most important news of the crypto week are selected. These are the headlines:
- Documents reveal that Do Kwon disbanded Terraform Labs Korea days before LUNA’s crash.
- Terra’s DeFi applications have lost millions of dollars.
- Changpeng Zhao said he is poor again, after the MOON crash.
- The UK Ministry of Economy and Finance announced that it would work to incorporate Stablecoins into a regulatory framework on digital assets.
- Michael Saylor: “We are very patient, Bitcoin is the future of money».
- Brazilian exchange refunds TerraUSD (UST) at $1 for its customers.
Documents reveal Do Kwon disbanded Terraform Labs Korea days before MOON crash
To begin, the information obtained from the Registry Office of the Supreme Court of the country, which was initially reported by the South Korean media Digital Today, highlights that Do Kwon managed to instigate the liquidation of two subsidiaries and an entire company before the collapse of LUNA.
Indeed, both the Busan and Seoul headquarters were agreed to be dissolved during a general shareholders’ meeting on April 30. And his disappearance took place on May 4 and May 6, respectively.
Terra’s DeFi apps have lost millions of dollars
According to data, it is shown that the funds held in DeFi applications created in Terra, have plummeted $134 million in blocked value.
Specifically, as the data show, the Anchor lending protocol, took the biggest hit. By the way, other applications show similar percentage decreases. For example, Lido, Astroport and Mars Protocol.
Changpeng Zhao said he was poor again, after the MOON crash
Specifically, Changpeng Zhao (CZ) said on Twitter that it was “poor again». After his stakes in LUNA, which were previously worth $1.6 billion, collapsed and are now worth only $2,200. Although he obviously didn’t lose his entire fortune, the losses his exchange has had with the collapse is staggering.
In fact, Changpeng Zhao, requested the Terra team to reimburse its retail investors first. «To lead by example in PROTECTING USERS, Binance will let this go and ask the Terra project team to compensate retail users first, Binance last, if it ever does».
The Ministry of Economy and Finance of the United Kingdom announced that it would work to incorporate Stablecoins into a regulatory framework on digital assets
Next, Sarah Pritchard, CEO of the UK Financial Conduct Authority (FCA), said that the regulator will take into account the recent volatility in the cryptocurrency markets when creating rules for the space in 2022.
«It really brings to the forefront the truly significant problems that exist here, both in terms of a well-functioning market and obviously consumer protection. In the last week, in which we saw significant price movements, he puts this in the foreground. And it shows the importance of making sure people understand that that’s a risk of where they put their money».
Michael Saylor: “We are very patient, Bitcoin is the future of money”
As if that weren’t enough, in an interview with Yahoo Finance, MicroStrategy CEO Michael Saylor stated that he expects Bitcoin to be worth millions. And that he is very patient because Bitcoin is the future of money.
«There is no price target. I hope we will buy BTC forever. And I also hope it’s worth millions. We are very patient, Bitcoin is the future of money».
As a curious fact, Michael Saylor pointed to the Federal Reserve as the culprit for the fall of Bitcoin (BTC). Because it raised interest rates, which caused investors to get rid of the riskiest assets.
Brazilian exchange refunds TerraUSD (UST) to $1 for its customers
In addition to this, Nox Bitcoin, a crypto exchange in Brazil has taken the step of investing its own money to refund customers their TerraUSD (UST) at full rate.
In reality, the report indicated that the firm spent 620,000 reais (about $127,000). To refund all its customers who lost money in the collapse of the Terra ecosystem.
“FatMan” from the Terra research forum commented that the move could set a precedent for exchanges around the world:
«This case can be used as a key precedent to argue that exchanges are liable for UST losses if unlawful misrepresentations were made».
I take my leave with this quote from Lark Davis: “Shopping in 2022 will be remembered as a cool move in 2030».