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Terraform labs employee investigated by S.Korean police for alleged BTC fraud

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June 8, 2022 by Aishwarya shashikumar

According to a Korean news site, the Seoul Metropolitan Police Agency is reportedly initiating an investigation against a Terraform labs employee who allegedly embezzled Bitcoin, LUNA and Terra company cash, following the disappointing utter collapse of original Terra.

According to the report, the police received information in the preceding period that a person suspected of being a Terraform Labs employee was embezzling business assets, so they sought that the funds be frozen using a virtual currency exchange and then launched an investigation.

However, it has been stated that the link between Terraform Labs CEO Kwon Do-hyeong and embezzlement has yet to be established. A police official said,

“It was intelligence about an employee’s personal embezzlement.”

Furthermore, separately, the Joint Financial and Securities Crime Investigation Team of the Seoul Southern District Prosecutors’ Office had also received and is interpreting evidence of possible violations of the Act on the Regulation of Fraud and Similar Receipts under the Act on the Aggravated Punishment of Specific Economic Crimes, including allegations against CEO Kwon.

Terra’s biosphere crumbled after the Terra UST depegging in May. After a sharp price drop, the original LUNA lost all of its value, causing billions of dollars in losses. Changpeng Zhao, Binance’s CEO, said that the company lost $1.6 billion on its LUNA investment.

New Terra blockchain under-performs
The new Terra blockchain, which has only been operational for a week, is already falling short of expectations. Terra 2.0 went live on May 28 as part of Terra co-founder Do Kwon’s community-approved “Terra resurrection” strategy. The original Terra blockchain was abandoned after its collapse and rebranded as Terra Classic.

LUNA 2.0 got off to a shaky start, losing about 70% of its value in the first 24 hours, as many had predicted. Since then, the price of the LUNA 2.0 coin has remained unchanged. LUNA was trading at $4.49 at the time of publication, down 15.55 percent in the last 24 hours, according to CoinMarketCap statistics. The previous LUNA was trading for around $86 when the TerraUSD (UST) stablecoin lost its dollar parity on May 6.

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