South Korea police launch investigation into employee Terraform Labs who allegedly stole bitcoin

Last Updated: 8 June 2022

The drama of Terraform Labs, the organisation behind the Luna and TerraUSD fiasco, is not over yet. The Seoul Metropolitan Police Agency has reportedly launched an investigation against an employee. He is alleged to have stolen company funds.

Investigation launched

The news is brought by the Korean news site Chosun. They write that the police have been gathering information about an employee of Terraform Labs for the past month. He is suspected of siphoning off money from the company.

It seems that the police have ordered a crypto exchange to freeze an account (containing crypto currency).

What the role and position of Do Kwon in this is not known. However, the ‘leader’ of the project is also in the spotlight. An investigation has been launched by the Supreme Prosecutors’ Office Republic into the South Korean’s role in this whole soap opera.

All employees of Terraform Labs are being questioned. Some of them are now getting into trouble themselves.

Million-dollar damage

To date, more than 76 complaints have been filed in South Korea. The reported loss of these victims has reached $5.5 million.

After the Terra UST imploded in May, Terra’s ecosystem collapsed. Luna’s value evaporated and a snowball effect forced the organisation to sell some 80,000 bitcoin.

Previously, there had also been a fuss because 10,000 BTC had disappeared from nowhere. The final word on this has undoubtedly not yet been spoken. Also given that the follow-up project Luna 2.0 is doing very poorly and dropped 70% immediately after its launch.

The organisation is still looking for compensation for all the victims of Luna 1.0.

  • Gabriele Spapperi

    I first came into contact with Bitcoin in 2017 - and since then, the topic of cryptocurrencies has never left me. For this reason, I have also made BTC & Co. part of my profession and write as a freelance author for crypto publications.

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