South Korean authorities have questions about the Terra collapse. The Seoul Southern District Prosecutors Office reportedly launches a full-scale investigation of Terraform Labs in the aftermath of the fall of the Terra ecosystem.
The South Korean government continues to investigate Terraform Labs, the firm behind the Terra Network as well as Luna Classic , previously known as Terra , and TerraUSD tokens, by reportedly summoning subpoenas to employees.
South Korean authorities have reportedly summoned all employees at Terraform Labs as part of a full-scale investigation of the collapse of UST and LUNC, the local news agency JTBCAccording to the report, the probe is conducted by the joint financial and securities crime investigation team of the Seoul Southern District Prosecutors Office. The authorities are looking into the case to check for signs of intentional price manipulation and whether the tokens went through proper listing procedures.
The investigators also reportedly alleged that the Terra token’s mechanism was faulty in the first place, as UST is not pegged to a stable collateral or profit model. “At a certain point in time, there is no other way but to collapse because it cannot handle interest payments and fluctuations in value,” the authorities reportedly said.
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