All employees of Terraform Labs in charge, while the investigation progresses, report report
All employees of Terraform Labs in charge, while the investigation progresses, report report
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According to reports, prosecutors have received an explanation that shows that some Terraform employees were against the introduction of VAT and Luna after the internal modeling failed
- At least 76 victims have now submitted a formal complaint against founder Do Kwon and co-founder Shin Hyun-Seong
The investigation against the South Korean crypto startup Terraform Labs-the company behind the failed stable coin ecosystem Terra-is increasing.
Under the leadership of their joint investigation team for financial and securities crime, the public prosecutor's office of the southern district of Seoul is now examining the employees of the company jtbc , citing an employee of Terraform Labs.
The authorities have invited all employees of Terraform Labs and asked them to submit corresponding company materials, JTBC reported last Friday and described it as a "comprehensive examination". The source of the outlet is said to have worked at Terraform Labs during the first development of the Terra Blockchain network in 2019.
luna changed the owner for about $ 3.30, after it was first In May 2019. After one year, Luna had already fallen by 94 % to less than $ 0.20.
It was only about three months after Do Kwon, co -founder and CEO of Terraform Labs started to fail. VAT aimed to maintain its dollar bond with an algorithm that burned Luna in exchange with VAT.
The market rated Luna $ 85 in early 2022, a price increase of more than 40,000 % in 18 months. Ust meanwhile kept his dollar binding, albeit with a few little floors.
but VAT would not survive long. At the beginning of this month, the token dramatically detached from the US dollar-it fell from $ 1 to $ 0.15
in less than a week.The exodus of investors at the same time caused Luna to collapse on the fraction of a cent. Ust and Luna together had a market value of almost $ 50 billion before de-pegging; A week later they were worth $ 3 billion.
Now, against the background of Kwon's attempted revival of the Terra ecosystem on another blockchain (with other tokens), investigators reported reports that some insiders from Terraform Labs are against the introduction of Luna and VAT after the internal modeling of the protocol was ultimately failed.
Despite the obvious reluctance of the employees, Kwon urged to use the tokens, JTBC noted. The Seoul public prosecutor's office is now investigating whether local crypto exchanges have adhered to the proper notification procedures for VAT and Luna as well as possible price manipulation.
While the official investigations are underway, 76 victims have filed a complaint with the public prosecutor's office against the co-founder of Kwon and Terraform Labs, Shin Hyun-Song. Overall, according to JTBC, these symptoms are associated with losses worth 6.7 billion WON ($ 5.4 million).
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The contribution all of the employees of Terraform Labs in charge, while the investigations are raised, report is not a financial advice.