Breaking: Terra Employee Stole 80 Bitcoin, S.Korean Police Confirm

By Varinder Singh
Updated July 15, 2022
Should Terra Classic (LUNC) Community Wait Before Voting On Crucial Proposal 11030?

A Terraform Labs employee arrested by the Seoul Metropolitan Police Agency on Tuesday stole 80 bitcoin worth nearly $2.39 million. Terraform Labs traded large amounts of crypto assets in mid-May when the prices of UST and LUNA collapsed.

However, it is still unclear if Terra founder Do Kwon or any other employees were involved in the embezzlement of funds. South Korean authorities are currently investigating Terra and its employees.

Advertisement
Advertisement

Terra Employee Charged With Embezzlement of 80 Bitcoin

An employee of Terraform Labs has stolen 80 Bitcoin worth nearly $2.39 million during the Terra’s UST and LUNA collapse in May, South Korea’s Yonhap News Agency reported on June 9.

The police is currently looking into the circumstances in which the employee of Terraform Labs tried to embezzle bitcoin. The employee seems to have tampered with the Bitcoin reserves of the Luna Foundation Guard, which were stored to support the stability of UST stablecoin.

After the incident, the Luna Foundation Guard (LFG) announced that it has sold most of its Bitcoin holdings and only 300 Bitcoin remains in the reserves. The police started investigations in mid-May and requested the domestic exchanges to freeze the related funds. However, issuing a warrant takes time due to the involvement of overseas exchange.

A police official told Yonhap:

“It is still unknown whether there are many systematic embezzlement or if it is related to Terraform Labs CEO Kwon Do-hyung.”

The police is actively looking into other previous transfers or fund flow to Do Kwon and related parties. Meanwhile, Terra’s co-founder Daniel Shin has denied any allegations of malpractice or fraud related to Terra’s crash.

Advertisement
Advertisement

Terra 2.0 (LUNA) Prices Continue to Fall Amid Investigations

The investigations and lawsuits over Do Kwon and Terra’s collapse have caused investors to lose confidence. The Terra 2.0 revival plans seem to be failing as the LUNA price continues to fall. At the time of writing, the LUNA price is currently trading at $2.94, down 19% in the last 24 hours.

Terra 2.0 token made an all-time low of $1.96 yesterday. The LUNA price is down nearly 75% in the last 8 days.

Advertisement
Varinder Singh
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.