Several weeks ago now, the Terra (LUNA) protocol broke into a million pieces. Crashing its UST stablecoin, LUNA, the network’s cryptocurrency is reduced to nothing. Faced with this disaster, many regulators and financial watchdogs decide to take the matter into their own hands. From the SEC, to the UK, to South Korea: all are looking to answer this question: why? In this hunt, South Korea seems to have obtained some results: an employee of the Luna Foundation Guard (LFG) would have stolen 80 bitcoins.
Terraform Labs investigation: South Korean police in charge
Among all the investigations, it is the one conducted by the South Korean police, the country of origin of the company TerraForm Labs, which has borne fruit. The Korean media explain that an employee of LFG would have embezzled 80 BTC, which corresponds according to the current markets to the coquette sum of more than 2 million dollars.
The suspicions of the Korean authorities would be founded on the basis of the announcement made by the Luna Foundation Guard (LFG). Indeed, despite the fundraising, the latter had announced that it would sell its bitcoin holdings and that it had only 300 bitcoins in its treasury. Billions of dollars would have disappeared under the mattress.
These funds were used to maintain the stability of the fallen stablecoin of the Terra blockchain. They would even come from bitcoins purchased in mid-May in an attempt to keep the UST stable. Suspicions were already hanging over this organization. In fact, the relevant authorities had requested the freezing of the funds to open an investigation.
Embezzlement: Terra in trouble
The investigation will be lengthy, as the warrant takes into account the involvement of foreign cryptocurrency platforms in South Korea. Yonhap, a Korean media outlet, reports the statements of a South Korean police official:
“It is not yet known whether there are many systematic malpractices or whether they are related to Terraform Labs’ CEO Kwon Do-hyung.”
After these events a new Terra blockchain was set up. The plan for the Terra rebirth operation proposed by Do Kwon was approved by the community. However, it is not working as planned.
The police continue their search despite the arrogance of Terra’s founder. Terra, through its co-founder Daniel Shin, denies the allegations of the police. This case of embezzlement will continue to be a hot topic. At this time, there is no information to support the involvement of Terraform’s CEO in this theft. The SEC is investigating the laundering of millions of dollars.
