Seoul Metropolitan Police Agency launched an investigation against an employee from Terraform Labs, who is allegedly involved in the embezzlement of corporate funds in Bitcoin from the company in May.
South Korean police stood by its findings that the employee’s unlawful act was purely personal and did not involve Terraform Labs Founder Do Kwon.
Following an investigation conducted by Seoul police, authorities requested to freeze the employee’s funds in crypto exchanges and then proceeded with an inquiry.
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Terraform Requests For Withdrawal Suspension
Meanwhile, the police requested that the local cryptocurrency trading platforms Upbit and Bithumb prevent the Luna Foundation Guard, a non-profit organization focused on the Terra blockchain, from withdrawing funds from accounts maintained at virtual currency exchanges.
However, the police-requested stoppage is not mandatory under South Korean law, so exchanges have the option to provide aid.
LUNA 2.0 lost 70% of its value in 24 hours following its launch (Coingape).
LUNA 2.0 – A Classic Failure?
Following the de-pegging of Terra UST, Terra has collapsed in its entirety. LUNA has crashed and lost all its value, resulting in billions of dollars worth of damages.
When Terra 2.0, or rebranded as Terra Classic, went live on May 28, everybody thought this would be Terra’s revival. However, Terra Co-Founder Kwon’s Plan B was a dismal failure.
LUNA 2.0 shaved off its value by 70% 24 hours following its launch. LUNA 2.0 coin traded at $4.29 at publication, which plunged by 15.55% after 24 hours. Given this data, the old LUNA was even performing better while trading at $86 on May 6.
BTC total market cap at $862 billion on the daily chart | Source: TradingView.com
LFG Objective Was To Protect Terra Investors
LUNA’s market cap is at the 2,806th spot out of over 13,400+ cryptocurrencies, with over $380 million in trade volume seen in the past 24 hours.
When the TerraUSD (UST) stablecoin lost dollar parity on May 6, the prior LUNA was trading for approximately $86.
The Luna Foundation Guard was designed to protect Terra project investors. One of the main objectives of the group is to keep Terraform Labs adhering to guidelines in the administration of the UST stablecoin.
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Featured image from Kaspersky, chart from TradingView.com