South Korean authorities have initiated an audit of Terraform Labs employees as part of an investigation into the ecosystem’s collapse. This was reported by local news agency JTBC.
According to media reports, the Seoul Southern District Attorney’s Office has sent subpoenas to all employees of the organization. Authorities are examining whether there was deliberate price manipulation and whether LUNA went through “proper listing procedures”.
The news agency claims that investigators took statements from an employee involved in the development of Terra in 2019. He allegedly stated that even then the mechanism of the native token was “faulty”.
It was previously known in South Korea that an interdepartmental group of prosecutors and financial regulators would investigate Terra’s collapse.
On May 24, authorities held an emergency meeting in the country’s National Assembly. Vice President FSS Lee Changwoo announced that it has checks on companies that provide Terra-related financial services.
That same month, LKB & Partners lawyers announced their plans to sue Terraform Labs CEO Do Kwon and demand that prosecutors confiscate his property.
Remember, on May 28, Kwon announced the launch of the Terra 2.0 mainnet and token accrual to those who participated in the LUNA airdrop.
On May 26, the Terra Classic community approved the proposal to burn TerraUSD (UST) in the community pool and stablecoins issued as part of the latest phase of liquidity stimulation on the Ethereum blockchain.
Source: Fork Log
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