As per a local news channel, an urgent meeting has been called upon by the newly elected government of South Korea today, with the executives of the top five crypto exchanges working in the state, including Gopax, Korbit, Coinone, Bithumb, and Upbit. These companies have reported losses worth $40 billion from the Terra collapse.
Yoon Chang-Hyeon, South Korea’s ruling party member and chairman of the parliament’s special virtual assets committee— said in a Facebook post that the authorities would check for investor protection measures while referring to the Terra episode.
The reports by the local news channel indicated that crypto exchanges could be held responsible for the losses of investors from the Terra crash. The companies have failed to provide protection to investors’ money from the Terra incident, which raises questions about their intent for investor protection.
Chang-Hayeon had called for an urgent meeting of the National assembly to call upon the house members to initiate an investigation, officially, into the Terra mishap. The ruling party member also stressed the actions of crypto firms when the crash was happening. The authorities are concerned because the firms kept the trading windows open for UST and LUNA trades, given their trading volumes and high transaction fees.
Do Kwon, the CEO of TerraForm Labs, has purportedly been invited to the urgent meeting interview. The CEO is already under investigation for running a Ponzi scheme by advertising impractical returns on UST through the Anchor Protocol. The investigations were alerted when South Korean investors reported their intention to sue Kwon and his prime supporter, Daniel Shin, for financial offence connected with the Terra debacle.