Do Kwon continues to be the recipient of a series of investigations following the collapse of Terra.
South Korean authorities have launched a full-scale investigation into the collapse of Terra ecosystem tokens LUNA and UST, as well as its CEO and founder Do Kwon.
Local news outlet JTBC reports recently that the authorities seek to unravel whether Terra’s CEO manipulated the prices of UST and LUNA in ways to cause their prices to soar or dip for his selfish interest.
Furthermore, the authorities are also investigating whether domestic exchanges in the country also went through the proper listing procedures and reviews before Terra tokens were made available to the public.
Complaints Against Terra Surge
The development comes as the number of investors who suffered huge losses from the Terra collapse continues to file complaints with the relevant authorities.
Since the crash of TerraForm Labs and the company’s ecosystem tokens, the total number of aggrieved investors who have filed complaints to the Seoul prosecution office has surged to 78. These investors reportedly suffered a combined loss of 6.7 billion won ($5.4 million).
South Korea Launches Series of Investigations into Terra Collapse
Recall that following the Terra collapse, Korean authorities have made significant efforts into investigating the main cause of the UST and LUNA crash.
The authorities argued that investigations into the matter had not been properly made, thus prompting the country to rebirth its specialized crime unit called the “Yeouido Grim Reaper.”
The investigation unit consists of 40 people who are employees of different Korean enforcement agencies, including the Financial Services Commission (FSC) among others.
It is no longer new that Terra’s CEO has been under a series of investigations in Korea since the collapse of UST and LUNA. Kwon was alleged to be investigated for tax evasion charges and will be made to pay $78 million.
Similarly, the CEO of Terra was also summoned before the Korean Congress to explain the exact cause of the crash to the country’s lawmakers.
Kwon Ignored Warning of Terra’s Collapse
Apparently, Korean authorities are not through with Terra following the collapse of UST and LUNA. According to JBTC, a number of Terra employees who were recruited during the early phases of the project made shocking revelations to investigators.
The employees disclosed that prior to the launch of Terra tokens, Kwon was warned that the projects may fail in the future.
However, he refused to heed these warnings and proceeded to launch the cryptocurrencies to the public.
“Even at that time, there was a warning inside that there could be a collapse at any time, but CEO Kwon Do-hyeong forced the coin to be launched,” the employees said.
Meanwhile, Terra has already launched efforts to compensate employees for their losses. Part of the compensation plan includes the launch of new LUNA tokens and burning the excess UST reserve.
However, despite these moves, the coins’ value is far from its all-time high (ATH) of over $120 recorded last month.
At press time, the newly launched LUNA tokens are changing hands for around $6.15.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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