South Korean prosecutors released an investigation into all Terraform Labs employees following the crash of the UST.
South Korea is a nation that has not stood still after the crash of the Terra stablecoin, UST, which caused a general disaster in the market. It has already taken several procedures: Last week, South Korean law enforcement authorities executed protocols to suspend the circulation of the assets of the Luna Foundation Guard (LFG). This organization brings back up to the Terra ecosystem.
In addition, he had a meeting with the country’s exchanges to assess their responsibility and protection of users during the crash. He also started investigations into Terra’s founder, Do Kwon.
According to the news brought by local media, South Korean prosecutors started a thorough investigation of Do Kwon and Terraformed Lab employees. The joint financial and securities crime investigation team of the Seoul Southern District Public Prosecutor’s Office summoned company employees to discover if they were aware that a collapse was possible before it all took place.
A big Failure
The report says prosecutors managed to get a statement from a whistleblower who highlighted some reservations against releasing Luna and Terra because the pilot model failed within the entity at the time. Prosecutors believed the item got launched and traded despite this situation.
Prosecutors are also investigating whether Do Kwon influenced over prices and whether the item went through an appropriate listing review procedure. Employee questioning could paint new panoramas of what happened behind the curtains and whether those leading the project were genuinely aware that things could inevitably fail.
According to media reports, the number of people issuing legal complaints against Terraform and Do Kwon keeps increasing. Tons of lawsuits got already filed against those connected to the Terra project. Lawmakers have also entered the fray, intending to pay attention to Kwon before Congress, and law enforcement warned local exchanges to freeze assets that might come from the Moon Foundation Guard.
Terra’s Ecosystem is in Deep Trouble
Those responsible are currently working hard to deliver many strategies to get back into action, but it does not seem that it will be easy.
Terra launched Luna 2.0 to restore the Terra ecosystem equilibrium. It did not work out the way they wanted, as the new LUNA token crumbled down by almost
80% after its release. Many investors appear to get sold to recover some of their losses during the incident.
On the other hand, some South Korean exchanges are wary of listing the new LUNA token. The team could defend that Terra 2.0 is the birth of a new blockchain, but investors appear to be doubtful about it.
Despite the post-launch drop and today’s news, Luna is recovering slightly, with a current cost registered at 12.10%. However, it was still around $6 when released with prices near $20.
By: Jenson Nuñez
