Former Terra Labs (LUNA) employees grounded in South Korea for investigation

Big dam for Terra elders – Often described as the far west (Sometimes with good reason), the crypto ecosystem is still a sector in which malicious (or simply irresponsible) actors operate with impunity. The shock wave that followed the collapse of the LUNA and its stablecoin UST maybe will change the game… and give food for thought to regulators.

Total impunity in cryptos? The change is now

the global crypto market has been on the downward slope since November 2021. The long and painful fall from the last peaks is now embellished with cascading liquidations and bankruptcies. Even the some of the most respected players in the industry are concerned.

Arrogance, mismanagement of funds, very risky strategies based on a theory “supercycle”: everything is there. Perhaps only user funds and associated returns are missing. Something to give ideas to deterministicwho will not be asked to create legal precedents!

The founder of Terra Labs, Do Kwon is in pole position to become an example. Not necessarily honesty or risk management, but a ideal culprit to illustrate the risks related to cryptocurrencies and the responsiveness of the issuer to these excesses. If, according to him, the Luna Foundation has no problem with the South Korean tax authoritieshis ex-employees are nevertheless under the influence of a ban on leaving the territory. Terra Labs developer teams are under investigation.

This ex-employee of Terra Money is not going to New York for the NFT NYC conference from June 20 to 23, 2022 –Source: Twitter

Given the damage caused by the total eclipse of the LUNA (-99% in a few days) and its associated stablecoin, it seems logical that key members of the project would be forced to stay put. Their testimonies are essential to shed light on this project, in particular on its lunar yield proposed via the protocol Anchor (20% annual on the UST).

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The LUNA lawsuit settled before that of Ripple?

Revealed by the Korean news channel JTBC, the embargo against developers and former developers of Terra Money was then confirmed on Twitter. We also learn that, for its part, Do Kwon would currently be Singapore, outside Korean jurisdiction. This could slow down the procedures somewhat. The 2 countries are considering, however, the possible means to repatriate him, or at least to prevent him from fleeing.

“It is known that the prosecution conducted a legal review to see if it is possible to charge Kwon with other crimes, such as fraud. However, since CEO Kwon is staying in Singapore, measures such as invalidating his passport [doivent être prises], before opening a mandatory investigation. »

Article by JTBC

Pour as much, it will still take time to sort it all out. But above all, it will take patience to see Do Kwon at the helm in his native country. On anticipation “that it will be some time before the investigation into key executives, including CEO Kwon, begins ».

The South Korea seems to do the needful. It prepares the ground in order to release all the responsibilities in this affair. Never has a Top 10 crypto protocol been wiped off the map in such a short time. This has impacted at the passage of thousands of investors (individuals and institutions). The perfect opportunity to score a big blow and advance the pawns of regulation.

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