Terra Employee Investigated For Alleged Embezzlement by Seoul Police

Terra Employee Investigated For Alleged Embezzlement by Seoul Police
  • According to reports, this theft happened in May 2021.
  • The South Korean authorities are looking into Do Kwon’s tax evasion.

Reports from South Korea claim that a Terra employee is under investigation for allegedly embezzling Luna and Terra’s corporate funds. According to reports, this theft happened in May 2021.

The Seoul Metropolitan Police Agency’s Cyber Investigation Division got a tip-off earlier this month that a person was embezzling corporate funds. As a result, the police in the nation froze assets belonging to the non-profit organization Luna Foundation Guard.

Investigation Underway

The Luna Foundation Guard protects investors in the Terra project. It is the main objective of the organization to hold Terraform Labs to account in regards to the UST stablecoin.

An investigation into the circumstances of this case is presently underway, according to information acquired from local media. “We are identifying the subject and checking whether there was actual embezzlement,” a police officer probing the financial crime said. As for Terraform Labs’ CEO, Do Kwon, his role here is unclear. Despite his image as an untrustworthy tech celebrity, it seems that this embezzlement has nothing to do with him.

Following the devastating collapse of Luna and TerraUSD, the Terra ecosystem seems to be sliding out of hand. The South Korean authorities are looking into Do Kwon’s tax evasion to make things worse. Police in charge of financial crime investigations is looking into this matter. Five Terra/LUNA investors have taken matters into their own hands by suing Do Kwon.

Do Kwon’s idea to build a new blockchain dubbed “Terra 2.0″ without a stablecoin had been approved by Terra’s validators. Luna (LUNA), the native token of the new blockchain, will be distributed to LUNA and UST holders depending on their holdings. Luna classic (LUNC) will be the new identity for the Terra blockchain, which is still operational.

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An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.