Yun Chang-hyun, a South Korean lawmaker, on Tuesday proposed that the founder of Terraform Labs, Do Kwon, be summoned before the country’s National Assembly for a hearing.
Local media outlet, Newspim, reports that Yun, a right-wing legislator from South Korea’s ruling party, proposed the idea during the legislative body’s session.
The lawmaker’s proposal follows the crash of LUNA and the TerraUSD (UST), the Terra blockchain’s cryptocurrency token and algorithmic stablecoin , respectively.
“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,” Yun said during the session.
Yun also raised concern about the differing responses of cryptocurrency exchanges in the Asian country to the crash which shook crypto communities around the world.
“There is a part that raises questions about the behaviour of exchanges during the crash. Coinone, Korbit, and Gopax stopped trading on May 10. Bithumb on May 11 stopped trading daily, but Upbit did not stop trading until May 13,” the lawmaker pointed out.
Emphasizing on the importance of the proposed hearing, Yun said investors were losing money. He added that the legislative body should not delay its action.
The Historic Crash
Terra’s LUNA crashed more than 90% last week, dropping to almost $1 after the UST stablecoin lost its 1:1 peg to the United States dollar, plummeting to as low as $0.29.
The fall is said to be one of the biggest crypto crash for a major cryptocurrency, with many investors losing huge sums of money.
For example, Binance, the world’s largest cryptocurrency exchange by volume, had about 15 million LUNA tokens worth $1.6 billion at LUNA’s peak price in April. The exchange purchased the token in 2018 for $3 million. Following the crash, the investment is now worth less than $3000.
Kwon’s attempt to save the UST by selling $3 billion worth of Bitcoin through the Luna Foundation Guard did not redeem the controversial stablecoin.
Meanwhile, yesterday, the Terra creator proposed a hard fork to the Terra blockchain. Kwon suggested that the old chain be called Terra Classic (LUNC) with its token re-labelled as Luna Classic or $LUNC.
On the other hand, he submitted that the new blockchain could be called “Terra” with a token Luna or $LUNA and without algorithmic stablecoins.