Thursday, June 1, 2023

Terraform Lab Workers Questioned by Korean Officials


Prosecutors want to determine if officials were conscious of Terra and Luna’s weaknesses in the process. According to JBTC, South Korean officials have initiated a fresh inquiry into Terraform Labs.

Korean Officials Call in a Team

The Seoul Southern District’s banking and securities criminal prosecution group summons all Terraform Labs personnel. Hence, it is the company’s underlying UST as well as LUNA cryptos.

Prosecutors appear to have a great interest in whether Terraform Labs officials were knowledgeable of Terra and Luna’s design problems and if purposeful manipulation of the market will occur. Moreover, they were thinking about whether the pertinent assets were on the list.

According to one worker, there was a caution indoors during the release that there may be a crash at any moment. Consumers would swarm to a product that grabbed their attention, according to another remark. Nevertheless, in the absence of a stable collateral structure, such a project would have no option but to fail since it cannot handle interest costs and value changes.

Terra blockchain assets went bankrupt the previous month. The UST stablecoin has lost its dollar peg and is now worth $0.02, whereas the Luna Classic coin is at $0.0001.

The resurrected blockchain is doing marginally smoother. Its LUNA coin is worth $9.16, which is not approximately as much as LUNC’s initial all-time high of $119 in April. The newer blockchain is an effort to save what is in the Terras society. This follows the blockchain’s startling meltdown previously this month.

Other Latest Terra Incidents

That’s not the first time South Korean officials have done these things toward the Terra project and its participants. Around May 20, authorities began looking into whether Terraform Labs or its senior executives ran a Ponzi operation.

Subsequently, on May 23, Korean officials are asking that they freeze those assets that associates with the Luna Foundation Guard. The Seoul Metropolitan Police Agency’s Cybercrime Investigation section is requesting to keep all assets in an account. These are the accounts that the Terra-affiliated non-profit group withholds.

The demand comes from the officials investigating allegations of corporate finance theft. Nevertheless, they should note that the markets are not constitutionally requiring them to hold the cash. Therefore, it is unknown whether they would comply with the police’s demand.

Apart from any ongoing government measures, investors are planning to sue Kwon in a civil case. Terra’s tragic downfall appears to have spilled over into South Korea’s legal system.

Beyond Korea, the United States Prior to Terra’s current downfall, the SEC filed a summons last year. A federal court has directed Terraform Labs CEO Do Kwon to cooperate with the Securities and Exchange Commission’s Mirror Protocol investigation summons. According to the February 17 filing, the tribunal has indeed read all of the parties’ submissions.

Miguel Garcia
Miguel Garcia
Miguel Garcia is a writer for Cryptoconstellation. Miguel has always been fascinated with Crypto. He has experience in Business and finance. Miguel loves sport cars and football.

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