The South Korean authorities initiated an audit of Terraform Labs employees as part of an investigation into the collapse of the ecosystem. This is reported by the local news agency JTBC.
According to media reports, the Seoul Southern District Prosecutor’s Office sent subpoenas to all employees of the organization. Authorities are reviewing whether there has been deliberate price manipulation and whether LUNA has gone through “proper listing procedures.”
The news agency claims that investigators obtained the testimony of an employee who participated in the development of Terra in 2019. He allegedly stated that even then the mechanism of the native token “was faulty.”
Earlier it became known that in South Korea, an interdepartmental group consisting of prosecutors and financial regulators would investigate the collapse of Terra.
On May 24, the authorities held an emergency meeting in the country’s National Assembly. FSS Vice President Li Changwoo announced inspections of companies that provide Terra-related financial services.
In the same month, LKB & Partners lawyers announced plans to sue Terraform Labs CEO Do Kwon and demand that the prosecutor’s office seize his property.
Recall, on May 28, Kwon announced the launch of the Terra 2.0 mainnet and the accrual of tokens to participants in the LUNA airdrop.
On May 26, the Terra Classic community approved a proposal to burn TerraUSD (UST) in the community pool, as well as stablecoins issued as part of the latest stage of liquidity stimulation on the Ethereum blockchain.