Without disclosing any names, a South Korean media agency reported that the Joint Financial and Securities Crimes Investigation Team of the Seoul Southern District Prosecutor’s Office has banned a prominent Terra designer from leaving the country. The team is investigating TerraForm Labs, its employees and founding members following the surprise collapse of TerraUSD (UST) and its sister token LUNC (Luna Classic).
The unnamed “key member” reportedly told media outlets that the company’s CEO, Do Kwon, had told him to make enough money to buy an island. The man was also accused of secretly selling cryptocurrency to institutions to raise large amounts of money.
Prosecutors are now investigating whether the money funds were used for ‘market price adjustments’ that artificially inflate the token’s value.
The move could mark the start of a full-scale investigation into search and seizure to prevent the person’s departure. A Justice Ministry official said in a statement,
“It is impossible to confirm whether the departure ban is related to the confidentiality of the investigation.”
According to research uncovered by blockchain security firm Uppsala Security, the collapse that resulted in billions of dollars in losses could be an internal work. It said the wallet of the potential attacker responsible for the incidents last month could be linked to Terraform or any entity related to it.
South Korean prosecutors dismissed previous rumors floating in space that the attackers who killed Terra were Wall Street whales. Rather, Terraform’s internal purse was being probed.
Terra’s explosion has attracted the ire of regulators around the world. The US Securities and Exchange Commission (SEC) recently launched another investigation into TerraForm Labs to determine whether the tokens in question are actually unregistered securities.
On the other hand, South Korean authorities to create a committee dedicated solely to strict regulation and supervision of the crypto industry until the approval of the Digital Assets Framework Act and the roll out of a government agency to avoid another Terra-style downturn was forced. ,
The latest development comes a day after Do Kwon, Luna Foundation Guard and other Terra-developing entities were sued by Illinois resident Nick Patterson for misleading investors.
new luna old story
Terra’s revival plans may have given a new token – LUNA – but any meaningful potential for an uptrend has been eliminated amid the ongoing bloodshed. Its worth repeating the same failure and no amount of Kwon’s reassuring words help.
Experts have expressed considerable doubts about the prospects of 2.0. For example, Mati Greenspan, CEO of crypto research and investment firm Quantum Economics, said,
“Luna 2 was never meant to survive, it was just a mechanism for some people who invested heavily to make up for some of their losses at the cost of new money coming from the hype. I have no idea the price will ever go up.” Can’t see the reason.
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