HomeCryptocurrencySouth Korea launches investigation into Terraform Labs over LUNA coin

South Korea launches investigation into Terraform Labs over LUNA coin

The cryptocurrency LUNA, previously known as the “stable coin”, crashed and its value plummeted by 98% within 24 hours, shocking the global cryptocurrency market. South Korea has also officially launched an investigation into Terraform Labs behind it.

The Seoul Metropolitan Police in South Korea said recently that they have opened an investigation into allegations that an employee of Terraform Labs misappropriated undisclosed amounts of Bitcoin held by the company.

They investigated two collective complaints on behalf of a total of 81 investors alleging that the algorithm deceived investors back in late May, and are now investigating the company further. The investigation will be carried out by a financial crime task force headed by South Korea’s justice minister.

Terraform Labs co-founder Daniel Shin denied investors’ allegations of fraud and financial regulation violations, explaining that they had no intention of deceiving, but just wanted to use blockchain technology to innovate payment and settlement systems. flaws, and no attempt to manipulate prices.

Cryptocurrency investment is very popular in South Korea, so this incident also caused many retail investors to lose their money. Although LUNA later carried out a “hard fork” to launch a new currency, the price of the new LUNA currency fell by more than 80% after 2 weeks of trading

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Image Source: Unsplash

Mehmet S. Kaya
Mehmet S. Kayahttps://teknonel.com
Mehmet is one of the administrator of Teknonel. As a software developer, he loves to share his knowledge in related topics. He is highly familiar with the editorial process from the inception of an article idea, through the iterative process, publishing, and performance analysis as well as product reviews.

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