South Korean authorities are now summoning all employees of Terraform Labs, which developed Luna Classic (LUNC) and TerraUSD (UST).

According to a local media <a href="https://news.jtbc.joins.com/html/590/NB12060590.html" target="_blank" rel="noopener">report</a>, the joint financial and securities crime investigation unit of the Seoul Southern District Prosecutors’ Office has summoned all Terraform Labs employees, the firm behind the UST and LUNA cryptocurrencies.

With the investigation, authorities are trying to determine if there was intentional price manipulation of LUNC or UST. Authorities are also looking at whether the tokens followed proper procedures for listing on domestic exchanges.
In South Korea, the number of investors impacted by the Terra collapse is estimated at 280,000 by the Financial Services Commission. Some affected investors have also filed a class-action lawsuit against Do Kwon and Terra co-founder Shin Hyun-Seung, separate from any actions by authorities that are underway. Around May 20, investigators began investigating whether or not Terraform Labs or its key principals carried out a Ponzi scheme. 
Meanwhile, regulators are trying to tighten scrutiny of crypto exchanges in the country in light of the Terra fiasco. Later, Korean authorities requested that exchanges freeze assets related to the Luna Foundation Guard (LFG), the non-profit supporting the Terra ecosystem. Lawmakers also want Do Kwon to testify about the collapse in front of the National Assembly of the South Korean parliament.

Terraform Employees Under Probe for UST Collapse

South Korean authorities are now summoning all employees of Terraform Labs, which developed Luna Classic (LUNC) and TerraUSD (UST).

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Terraform Employees Under Probe for UST Collapse

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