Terraform Labs Is the Subject of an Official Inquiry by South Korean Authorities

Terraform Labs Is the Subject of an Official Inquiry by South Korean Authorities

May 25, 2022 Off By Roland Guirdonan

As the Terra UST stablecoin controversy takes another turn, South Korea is starting to tighten the screws on Terraform Labs and Luna CEO Do Kwon. 

The 30-year-old Korean has been questioned about the $18 billion UST stablecoin network, which he once said was “the oldest and most widely utilized algorithmic stablecoin in existence.” 

The move came after five Korean investors filed a criminal complaint alleging losses of more than $1 million. 

The Terra Luna Saga Has Taken Another Turn Today 

The Terra Luna saga has taken another turn today, with the Seoul Metropolitan Police Agency intervening. Local media reported on May 23 that South Korean police had contacted the country’s top crypto exchanges, requesting that any funds tied to the Luna Foundation Guard be frozen (LFG). 

According to the article, the police stated that there were signs that funds related to the LFG could be linked to embezzlement. However, the request was not an ultimatum, so exchanges are free to act as they see fit at any time. 

The police action this week has nothing to do with the ongoing legal inquiry into the company’s outspoken CEO. 

A Twitter user with the pseudonym “FatMan,” has been digging out the digital dirt, requesting more transparency on TerraForm Lab’s monthly spending by replying to Chris Amani, Terra’s head of operations and community, who claimed to be working with the media to “give factual information,” which he denied. 

FatMan said, 

“No thank you! No media stories. No fluff. Enough psyopsing. It’s very simple. Publish the transaction logs that the public are entitled to see. Explain where the Project Dawn money went. Explain how you spent $300m in one month on operations. Less words, more financial evidence.”

Recently, Donghwan Kim of Blitz Labs, a Seoul-based crypto consultancy firm, also commented on Terra Luna founder Do Kwon. Donghwan Kim said, “Do Kwon was like a successful cult leader, but now he’s the most despised man in Korea.”