Terraform Labs Staff Questioned by South Korean Law Enforcement
Crypto News

Terraform Labs Staff Questioned by South Korean Law Enforcement

4 months ago

The company behind the former stablecoin may still get into legal trouble as authorities summon Terraform Labs employees.

Terraform Labs Staff Questioned by South Korean Law Enforcement

Even though Terra V2 is already up and running, the aftermath of Terra V1 is still unfolding.

According to JBTC, a South Korean television network, the Seoul Southern District Prosecutors' Office's financial and securities crime investigation team summoned Terraform Labs employees involved in the blockchain's initial development. The report quotes employees being against the launch of UST based on possible "fluctuations in value."

Authorities are also looking into possible price manipulation and into whether LUNA went through a proper listing review process when applying to exchanges. Investors that were hit by the crash filed further complaints against Terra CEO Do Kwon. In total, JBTC quotes 76 investors having filed a complaint.

The investigation comes at an inopportune time for Terra.

The blockchain has just launched its V2 version, which is a hard fork of the renamed Terra Classic. The chain is supposed to be community-owned, with most of the token allocation going to former Luna Classic and UST holders.

However, the start for LUNA has not been the best. After a brief spike, the token dumped 75%, although it has since rallied in anticipation of another airdrop for Binance users. Still, most market participants seem to be wary of getting involved with Terra V2 too quickly.
That, however, does not stop Do Kwon from reportedly thinking about a re-launch of a decentralized stablecoin on Terra V2. Even though the failed algorithmic stablecoin from Terra Classic will not migrate, Terra's outspoken CEO seems to be thinking about how to get the party started again.

It remains to be seen whether the market would actually appreciate such a move. Initial reactions on Crypto Twitter were not too welcoming:

This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.
10 people liked this article