South Korea leaving no stone unturned in investigating Terra’s Debacle!
In May, when the market crash occurred, Terraform Labs was hit the most, making its worst nightmare come true. The stablecoin of the company UST and its sister token Luna de pegged to a value under $1. The loss of 99% of the value of both the stablecoin as well as Luna didn’t go down well with the investors.
Rumors about the founder Do Kwon’s foul play in the crash of the digital assets started going around. The rumor started getting more attention day by day, and finally the government of South Korea intervened into the matters.
South Korean government is leaving no stone unturned in the investigation of Terra’s debacle. As the information about Do Kwon’s hand in Terra’s fall started spreading, the prosecutors of the land started raiding the houses of the employees including the founder.
As a part of investigation, the prosecutors from South Korea, went on to raid at least 15 cryptocurrency exchanges that included Upbit, Bithumb and Gopax. The authorities also went on to ban the employees to fly out of the country. It is also reported that, the prosecutors also summoned a former official at a Terraform Labs for questioning.
Raid in co-founder’s house!
According to a local media report, the co-founder of Terra Daniel Shin, was raided by the South Korean prosecutors after the raid in 15 cryptocurrency exchanges was completed. The raid was justified by the media as a part of investigation by the prosecutors, over the allegations that fraud caused the collapse of the TerraUSD and Luna.
Prosecutors trying to put their complete focus on Do Kwon.
It is clear that the prosecutors of South Korea have taken the allegations seriously and raiding each and every person’s office or house, who has a connection with either Terra or Do Kwon. At the same time the prosecutors are also working on another angle of illicit activity committed by Do Kwon. This angle is about tax evasion. As both the allegations get stronger against Do Kwon, the company Terraforms Lab continues to drown in the market.
According to me, the debacle that Terra had, was most discomforting from a crypto enthusiast’s angle, to say the least. The turn up of events in the succeeding days of the debacle is miserable. From the investors point of view, the only hope is that a miracle happens out of nowhere and both the stablecoin and Luna revive back to normalcy.