[2022 National Audit] Lee Seok-woo, Dunamu CEO, Luna Self-Listing Controversy "Potential Conflict of Interest"

[Image source=Yonhap News]

[Asia Economy Reporters Ji Yeon-jin and Lee Jung-yoon] Lee Seok-woo, CEO of Dunamu, said there is a "possibility of conflict of interest" regarding the Luna coin self-listing allegations.

Lee appeared as a witness at the National Assembly's Financial Services Commission audit by the Political Affairs Committee and responded to a question from Kim Sung-joo, a member of the Democratic Party of Korea, who asked, "Isn't a coin listed on overseas exchanges automatically listed domestically considered self-listing?"

On the same day, Representative Kim pointed out that Dunamu Partners, a subsidiary of Dunamu which owns the virtual asset exchange Upbit, invested in 63.5% of the initial shares issued for Luna coin and earned a profit of 130 billion KRW, and that Luna's listing on the Bitcoin market was a 'self-listing.'

Kim also criticized Upbit for listing Luna only on the Bitcoin market rather than the KRW market, suggesting that Upbit had prior knowledge of Luna's insolvency.

He also criticized Bithumb, the second largest domestic cryptocurrency exchange. Kim stated that Bithumb Korea's governance structure is divided into the Initial line, which follows 'Vidente → InvioGen → Bucket Studio → Initial 1 & 2 Investment Associations,' and the former Bithumb CEO Lee Jung-hoon's line, both of which carry major shareholder risks. He warned, "The governance structure surrounding Bithumb Korea is intricately intertwined, so if even one investment collapses, both Bithumb Korea and Bithumb Holdings could face operational crises."

He emphasized, "If an exchange goes bankrupt, investors are practically unable to receive compensation, and the funds deposited in the exchange are not covered by the Depositor Protection Act, so they cannot be protected."