South Korean Authorities Investigates Terra Staff

South Korean Authorities Investigates Terra Staff

As Terra’s co-founder Do Kwon is finding ways to revive Terra, South Korean authorities launched an investigation to assess Terra’s fall to suspect its price manipulation angle, as reported by the local television network JYBC.

On Saturday the news stated that the Seoul Southern District Prosecutors’ Office’s joint financial and securities crime investigation team has called veterans of Terraform, who were part of the team and involved in the initial development of the Terra in 2019.

One of the former members has allegedly unveiled that the team was skeptical about the TerraUSD (UST) from the beginning of the project. 

The members of the team claimed that they have informed Do Kwon about the possible failure in the algorithmic mechanism designed to protect the asset’s peg to the U.S. dollar.

“Even at that time, there was a warning inside that there could be a collapse at any time, but CEO Kwon Do-hyeong forced the coin to be launched,” said the employee.

After getting the hint, the prosecutors are now assessing whether Do Kwon was aware of the faulty design. Also, they are assessing whether the price was intentionally manipulated or not.

Also Read: Vitalik Buterin Criticizes Defi Model After Terra Crash

Furthermore, the authorities are also examining other domestic crypto exchanges to check the listing process before listing UST and LUNA.

Korea Herald has recently claimed that Terraform Labs has closed its South Korean branch to dodge taxes. Terraform Labs is the firm behind the development of LUNA and UST. Allegedly, the company has already shut down its Korean branch 6 months before the official announcement.

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