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Terraform Labs Employee in Trouble for Stealing Company’s Bitcoin

Terraform Labs Employee in Trouble for Stealing Company’s Bitcoin

The Seoul Metropolitan Police Agency has launched an investigation against a Terraform Labs employee who was allegedly involved in the company’s embezzlement of corporate Bitcoin funds in May.

South Korean police have stood by their findings that the employee’s illegal act was purely personal and did not involve Terraform Labs founder Do Kwon.

Following an investigation by the Seoul police, the authorities demanded the freezing of the employee’s funds on cryptocurrency exchanges and then proceeded with an investigation.

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Terraform Requests Withdrawal Hold

Meanwhile, local cryptocurrency trading platforms Upbit and Bithumb have been asked by police to prevent Luna Foundation Guard, a non-profit organization focused on the Terra blockchain, from withdrawing funds from accounts managed at virtual exchange offices.

However, the stop requested by the police is not mandatory under South Korean law, so the scholarships have the ability to provide assistance.

LUNA 2.0 lost 70% of its value within 24 hours of its launch (Coingape).

LUNA 2.0 – A classic flop?

Following the untethering of Terra UST, Terra collapsed in its entirety. LUNA crashed and became worthless, resulting in billions of dollars in damage.

When Terra 2.0, or rebranded as Terra Classic, was released on May 28, everyone thought it would be Terra’s rebirth. However, Terra co-founder Kwon’s Plan B was a resounding failure.

LUNA 2.0 reduced its value by 70% 24 hours after launch. The LUNA 2.0 coin was trading at $4.29 at launch, which was down 15.55% after 24 hours. Considering this data, the old LUNA was trading even better at $86 on May 6.

Total BTC Market Cap at $862 Billion on Daily Chart | Source: TradingView.com

LFG’s goal was to protect Terra’s investors

LUNA’s market capitalization is 2,806th among more than 13,400 cryptocurrencies, with more than $380 million in trading volume in the last 24 hours.

When the TerraUSD (UST) stablecoin lost parity with the dollar on May 6, the former LUNA was trading at around $86.

The Luna Foundation Guard was designed to protect the investors of the Terra Project. One of the main goals of the group is to ensure that Terraform Labs adheres to the guidelines for the administration of the UST stablecoin.

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Kaspersky Featured Image, Chart from TradingView.com

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