South Korean Authorities Investigate Terraform Labs

by in Cryptocurrency News

Terra Luna South Korea

Terra's crash caused discussions and questions. The South Korean government now is investigating Terraform Labs, the company that developed the project to find out whether the team manipulated the price.

Related: Terra's collapse provokes the fall of cryptocurrencies close to it

According to local media, authorities have called on Terraform Labs employees as a part of a broad investigation to examine what caused the fall of UST and LUNA.

A report by JTBC News says that the financial and securities regulators will investigate and submit related materials.

Authorities will look into the case in detail, analyzing whether there was an intentional price pump and dump, or whether the digital currencies went through proper listing review process.

Previously, Luna investors filed a class action suit against Terraform Labs Chief Executive Officer Do Kwon and co-founder Shin Hyun-seun demanding information on user accounts, marketing materials, and UST-related messages. Reports say that as a result of the Terra Luna crash, investors lost around $44 M worth of deposits.