The Prosecutor General’s Office of South Korea summoned employees of Terraform Labs for questioning. They find out if the company’s management could have known about the problems in the Terra (LUNA) project before the collapse of UST.
The first evidence has already begun to appear in the media. One of the former employees of Terraform Labs admitted that the idea of launching the Terra (LUNA) project caused a lot of objections at the start. Her trial model was underdeveloped, failed during tests and had many defects.
The prosecutor’s office found that, despite the unfavorable signs, the team decided to launch the project under pressure from CEO Do Kwon.
Another employee stated that the head of the company insisted on returning TerraUSD to work, despite clear signals from team members.
“In the very beginning, there were signs that the UST could fall at any moment. But the CEO Do Kwon forced to list the coin, ”said one of the employees of Terraform Labs.
Another ex-employee of the company, who participated in the project in the early stages, gave his testimony. He acknowledged that the mechanism was unstable from the start. They understood that it was “a time bomb that could explode at any moment.”
If prosecutors prove that Do Kwon knew about the problems in the first place, he could face charges of intentional acts and causing harm to customers.
By the way, the Nansen team conducted an on-chain analysis of the UST history and also came to interesting conclusions.