Prosecutors collected evidence from seven cryptocurrency exchanges related to the bankruptcy of Terra and told its crew to stay in Korea. Traders awaited the pronouncements of Do Kwon, who said the project was not a fraud but had had bad luck.
The founder of Terraform Labs, Do Kwon, reportedly hired a South Korean lawyer to organize an investigation by national authorities.
According to local media, the executive sent a letter to a lawyer from the Seoul Southern District Prosecutor’s Office. The latter investigates the collapsed project, renamed Terra Classic (LUNC), to face the authorities in the legal circumstance.
In a recent interview with Coinage Media, Do Kwon claimed there were no charges against him. However, the prosecutors in South Korea behind the Terraform Labs case conducted an extensive investigation.
They collected evidence from 15 organizations, including seven cryptocurrency exchanges, linked to the bankruptcy of now extinct Terra. Besides, they reported the matter to Do Kwon, who was in Singapore, and told the rest of the company to stay in Korea.
Since mid-May 2022, Terra has become a target of extreme attention in Korea. The Financial Services Commission and the Financial Supervisory Authority had to recreate the strength of financial activity death to investigate the firm.
After that, the Korean police struggled to find a way to freeze the assets of the Luna Foundation Guard. That organization burned around USD 3 billion worth of Bitcoin in 3 days hoping to preserve Terra but failed.
The Seoul Metropolitan Police Department continued investigating Terraform Labs for alleged embezzlement and rejected the US Securities and Exchange Commission (SEC) appeal.
Do Kwon must testify before the Korean National Assembly at the proposal of Congressman Yun Chang-Hyun. In addition, the developer wants to prepare for lawsuits from many Korean traders.
On May 28th, the co-founder of Terra managed to relaunch the project by developing a new blockchain called Terra two. It still exists as a different blotch by CEO Do Kwon, although its developments are not excellent.
The Founder of Terra Thinks the LUNA Crash Is a Great Bet
The events related to Terraform Labs contributed to an indecision environment that enveloped the market. Investors decreased their trust due to the vulnerability in the network, while irregularities might have damaged the infrastructure, generating an asset leak.
The latter incident added to the factors that influenced the drop of cryptocurrencies.
Several months after the collapse of Terra, including the stablecoin UST, there has been little information from the developers. The CEO of Terra has not issued many opinions on the matter, adopting a limited stance.
The lack of data has led traders to await the pronouncements of Do Kwon, but his comments have reflected an optimistic view. He has said that the project is not fraudulent but has been unlucky.
The CEO and co-founder of Terraform Labs considers the crash to be a great bet. Amid the controversy over the collapse, he believes in the possibility of the ecosystem recovering.
By Alexander Salazar
