- Embezzlement related to Luna’s downfall got revealed recently.
- Allegations against Do Kwon have also been raised.
The South Korean authorities have been monitoring the crypto market in the country since Luna’s downfall. Similarly, the police are also investigating the matter. They are suspecting that there is more to the 99% fall in the value of the Korean cryptocurrency than just market volatility.
The Seoul Metropolitan Police Agency has been keeping an eye on Terraform Labs’ activities and has recently reported that they are suspecting an employee of the company of embezzlement of Bitcoin, which is categorized as the corporate funds of Luna and Terra. The police have received intelligence about an employee carrying out the activity in May last year. Therefore, crypto exchanges were requested to freeze funds of the LFG foundation to further investigate the financial fraud.
The authorities are also trying to find a connection between the theft and CEO Do Kwon, but they have confirmed that “It was intelligence about an employee’s personal embezzlement.”
However, a local media outlet has reported, that the Seoul Southern District Prosecutors’ Office’s Joint Financial and Securities Crime Investigation Team has received complaints against others including Kwon alleging violations of the Act on the Regulation of Fraud and Similar Receipts under the Act of the Aggravated Punishment of Specific Economic Crimes. Investing in the same is also ongoing.