Terra’s vows continue, as South Korea intervenes and plans to start investigation.
It is not unknown that Terraform Labs lost its credibility, trust and more importantly the moneys of investors in the market due to the market crash. Since, the market crash has occurred, Terra’s Stable Coin UST and its sister token Luna lost almost 100% of their value. They started trading at below $1 after the market crash. TFL’s revival tactics seem to be failing miserably as Luna 2.0 didn’t get off to the start expected by the company. Not only this, but also Do Kwon’s legal complications have impacted the company directly and have become a barrier for the growth of the company. In the recent developments, it is known that, South Korean Police and prosecutors are investing Do Kwon’s Terraform Labs after the $40 Billion debacle of the crypto tokens which shook the cryptocurrency market to say the least.
The issue of Embezzlement.
The Seoul Metropolitan Police agency, recently started investigating a case involving an employee from Terraform Labs for embezzling the investments of investors. Though in the initial stages of the investigations it has come out that Do Kwon has got nothing to do in regards to the case, the hit that TFL has got has surely dented the hopes of Luna 2.0.
Why did does South Korean Government involving itself in such a market implosion?
The market implosion saw the moneys of investors burn into ashes in the fire of the crash. Approximately 2,80,000 individuals from South Korea alone lost their life savings, educational savings in the crypto market implosion. The suicide incidents also shot up as at least 8 people were reported to be committed suicide due to the unbelievable market implosion.
From the investigations, the cops learnt that Do Kwon had liquidated Terraform Labs days before the market crash when the de-pegging of Terra USD and Terra Luna occurred. It is also learnt that Do Kwon was intending to leave the country to Singapore, as he was reportedly unhappy with the tax policies of the country.
It is the absolute truth that Terra’s crash in the market implosion caused a big dent in the hopes of the people who were investing in cryptocurrency by taking credits, by using life savings, educational savings and what not. But, as they say, Sun rises brighter only after a dark scary night, the market seems to be returning to its normalcy as Bitcoins and Ethereum rise again. But now the key thing to be observed is that, how does Terraform Labs cease on to the opportunity provided by the market.