Journalists report probe into Terraform Labs staff in South Korea

South Korean authorities have initiated an investigation into Terraform Labs staff as part of the probe into the collapse of the ecosystem, according to local news agency JTBC.

According to the reports, the Seoul Southern District Prosecutor’s Office has issued subpoenas to all staff of the organisation. Authorities are examining whether there was intentional price manipulation and whether LUNA underwent the ‘proper listing procedure’.

The agency asserts that investigators obtained testimony from an employee who, in 2019, helped develop Terra. He allegedly stated that even then the native token mechanism ‘was faulty’.

Earlier, it was reported that an interagency task force, comprising prosecutors and financial regulators, would handle the Terra collapse investigation.

On May 24, authorities held an emergency session in the National Assembly. FSS Lee Chang-woo announced reviews of firms providing Terra-related financial services.

In the same month, lawyers from LKB & Partners said they planned to file suit against Terraform Labs CEO Do Kwon and to request that prosecutors seize his assets.

On May 28, Kwon announced the launch of the Terra 2.0 mainnet and the distribution of LUNA tokens to airdrop participants.

On May 26, the Terra Classic community approved a proposal to burn TerraUSD (UST) held in the community pool, as well as stablecoins issued as part of the final stage of the liquidity mining incentive on the Ethereum blockchain.

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