Former Terraform Labs Developer Admits Terra for Payments was ‘Impossible’

Lee, a former Terraform Labs developer, testified that Shin Hyun-sung, former CEO of Chai Corporation, and Do Kwon, former CEO of Terraform Labs, acknowledged that the Terra project wouldn’t function as publicly advertised.

A local report stated Shin and eight others were accused of breaching the Capital Market Act, Lee was a crucial witness who saw the inner workings of the firm before its downfall.

Terraform Labs Developer Makes Strong Claims

According to a recent local report, the witness, identified as Mr. Lee, revealed his awareness of the legal hurdles surrounding the Terra project. He reportedly admitted that it was impossible to use Terra for payments.

Lee worked as a developer at Terraform Labs. However he disclosed obtaining this information through Terraform Labs’ founder, Do Kwon.

Kwon and Shin deceived investors by pretending that all transactions from the Chai payment system were being recorded on the Terra blockchain, when in fact, they weren’t.

Additionally, Mr. Lee’s recent testimony cast doubt on the operational framework of the Terra project.

Terraform Labs hinged on using Terra, a coin pegged to traditional assets like the dollar, as a virtual currency akin to physical money through the ‘Chai Pay’ system.

The subsequent rise in the value of Luna Coin, tied to Terra, was reported to generate profits.

At the time of publication, LUNC’s price stands at $0.00010910.

LUNC Price Chart 1 Month. Source: BeInCrypto

Terraform Labs Developer Challenged

In response, Shin’s defense counsel challenged Mr. Lee’s claims. He disputed the prosecution that Shin and Kwon were aware of the “impossibility of Terra payment utilization.”

They recalled a different version of events, suggesting Shin and Kwon had not acknowledged this limitation.

Read more: 11 best Altcoin Exchanges for Crypto Trading in January 2024

However, the prosecution alleges that Shin colluded with Kwon and others to falsely promote the ‘Terra project.’

Meanwhile, they specified this was over a timeline from July 2018 to May 2022, employing illicit methods to realize gains.

The post Former Terraform Labs Developer Admits Terra for Payments was ‘Impossible’ appeared first on BeInCrypto.