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.
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.
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.
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