Terra is constantly digging its grave and making a deeper hole.
Since the market crash, Terra has been functioning as an amateur and the team of terra has been diving into ocean of complications and issues. First the stable coin UST and its sister token lost almost 100% of its value and were reduced to less than $1. The failure in gaining the trust of investors in Luna 2.0, Do Kwon‘s involvement in issues regarding his remarks which he made humorously; his tax evasion actions surely made a big dent on Terra’s ecosystem. Now, in another development, Terra’s staff person has committed a crime of embezzlement, which has only dug deeper graves for Terra’s ecosystem.
Let’s look at a tweet below from Fatman.
The Seoul Police confirmed today that they are investigating an embezzlement case from last month where a TFL employee (not Do Kwon) allegedly stole bitcoins from the company’s coffers.https://t.co/BBVqDoEvvD
— FatMan (@FatManTerra) June 7, 2022
From the tweet it is certainly evident that, the Seoul Police has confirmed that the investigations are in progress in regards to an embezzlement case from the last month where a TFL employee allegedly stole bitcoins from the company’s coffers.
Details of the Embezzlement.
According to sources from South Korea, Seoul police are investigating a TFL (Not Do Kwon) employee for misappropriation of Luna and Terra business cash. This embezzlement occurred in May 2021, according to reports.
A report was obtained by the authorities in Seoul Metropolitan City that an individual from Terra may have embezzled corporate funds. As a result of such a report, the police proceeded to freeze the assets associated to Terra’s non-profit organisation, the Luna Foundation.
Luna Foundation Guard was enacted and brought into existence to safeguard investors in the Terra project. The primary goal of this group is to hold TFL accountable for the management of the UST stablecoin.
The statements from one of the cops revealed that the Seoul Police were running the investigations thoroughly and do not know who all were part of the fraud. They were also in the starting stages of the investigation which meant they were trying to understand if there was any activity which led to embezzlement of the corporate funds or not.
It is told as of now that, Do Kwon doesn’t have any kind of relation in the act and the activity if happened has happened without his knowledge. Even though Do Kwon has a bad reputation in the market especially for not being a trust worthy tech personality, currently it seems as though he has no involvement in the fraud.
In conclusion, it is not good for the whole crypto market as one of the major players is consistently falling under the radar of various kinds of complications. Recently, 5 investors also went on to file lawsuit against Do Kwon, which only add salt to the injury.