Terraform Labs (Terra) Staff Reportedly Under Investigation by South Korean Authorities

Terra’s unraveling is undoubtedly one of the biggest busts in the crypto industry’s history. While Kwon has already initiated his grand revival plan to salvage the Terra ecosystem, the people who worked with him in the now worthless “LUNA Classic” reportedly are under investigation.

  • According to a report, the Financial and Financial Securities Crime Joint Investigation Team of the Seoul Southern District Prosecutor’s Office have summoned all employees of Terraform Labs and have obtained relevant information.
  • The employees, who had been involved in the project since 2019, reportedly revealed that they had warned the founder and CEO of the crypto firm about an imminent collapse after the alleged failure of a pilot model.
  • The South Korean authorities are now investigating if Kwon was aware of the shortcomings and are looking into potential internal price manipulation. The prosecution is also investigating if the domestic cryptocurrency exchanges went through proper listing review processes.
  • Devasted by the losses, several investors have filed complaints with the authorities against the two founders -Do Kwon and Daniel Shin.
  • The latest development comes nearly two weeks after Kwon was in process of being summoned in front of the country’s parliament. It was Yun Chang-hyun, a rep from the nation’s ruling People Power Party, who had requested a hearing that touched upon LUNA and UST’s collapse as well as the role played by cryptocurrency exchanges following the entire fiasco.
  • As for Terraform Labs, Kwon had dissolved the company’s Busan headquarters and Seoul branch at the general shareholders meeting on April 30, one week before the fallout of the two tokens.
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