{"id":28423,"date":"2022-05-30T07:59:31","date_gmt":"2022-05-30T11:59:31","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=28423"},"modified":"2024-07-28T07:38:03","modified_gmt":"2024-07-28T11:38:03","slug":"south-korean-authorities-probe-terraform-labs-over-terra-crash","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/south-korean-authorities-probe-terraform-labs-over-terra-crash\/","title":{"rendered":"South Korean Authorities Probe Terraform Labs Over Terra Crash"},"content":{"rendered":"\n<p>South Korean authorities have summoned the staff of Terraform Labs for a full-scale inquiry into the collapse of <a href=\"https:\/\/coinscreed.com\/staging\/terra-2-0-plans-to-drop-the-ust-stablecoin.html\">UST<\/a> and LUNC<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/South-Korean-Authorities-Probe-Terraform-Labs-Over-Terra-Crash-1024x512.png\" alt=\"South Korean Authorities Probe Terraform Labs Over Terra Crash \" class=\"wp-image-28435\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/South-Korean-Authorities-Probe-Terraform-Labs-Over-Terra-Crash-1024x512.png 1024w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/South-Korean-Authorities-Probe-Terraform-Labs-Over-Terra-Crash-300x150.png 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/South-Korean-Authorities-Probe-Terraform-Labs-Over-Terra-Crash-768x384.png 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/South-Korean-Authorities-Probe-Terraform-Labs-Over-Terra-Crash-1536x768.png 1536w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/South-Korean-Authorities-Probe-Terraform-Labs-Over-Terra-Crash-150x75.png 150w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/South-Korean-Authorities-Probe-Terraform-Labs-Over-Terra-Crash-360x180.png 360w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/South-Korean-Authorities-Probe-Terraform-Labs-Over-Terra-Crash-750x375.png 750w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/South-Korean-Authorities-Probe-Terraform-Labs-Over-Terra-Crash-1140x570.png 1140w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/South-Korean-Authorities-Probe-Terraform-Labs-Over-Terra-Crash.png 1800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>South Korean Authorities Probe Terraform Labs Over Terra Crash <\/figcaption><\/figure>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\"><ul><li><a href=\"#h-south-korean-authorities-look-into-reason-for-terra-crash\" >South Korean Authorities Look Into Reason For Terra Crash<\/a><\/li><li><a href=\"#h-ust-was-not-pegged-to-reliable-collateral\" >UST Was Not Pegged\u00a0To Reliable Collateral<\/a><\/li><li><a href=\"#h-users-seem-not-to-trust-terra\" >Users Seem Not To Trust Terra<\/a><\/li><\/nav><\/ul><\/div>\n\n\n\n<p>The South Korean government is apparently calling personnel of Terraform Labs, the company behind the Terra Network as well as the Luna (LUNC) and Terra USD (UST) tokens.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-south-korean-authorities-look-into-reason-for-terra-crash\">South Korean Authorities Look Into Reason For Terra Crash<\/h2>\n\n\n\n<p>According to the local news station<a href=\"https:\/\/news.jtbc.joins.com\/html\/590\/NB12060590.html?log=jtbc%7Cnews%7Cindex_newsN_A\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> JTBC<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a>, South Korean authorities have summoned all <a href=\"https:\/\/coinscreed.com\/staging\/terraform-labs-korea-dissolved-days-before-luna-crash.html\">Terraform Labs <\/a>personnel as part of a full-scale inquiry into the collapse of UST and LUNC.<\/p>\n\n\n\n<p>The investigation is being carried out by the Seoul Southern District Prosecutors Office's joint financial and securities criminal investigation team, according to the article. <\/p>\n\n\n\n<p>Authorities are investigating the situation to see whether there were any signs of price manipulation and if the tokens went through legitimate listing procedures.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ust-was-not-pegged-to-reliable-collateral\">UST Was Not Pegged\u00a0To Reliable Collateral<\/h2>\n\n\n\n<p>The investigators said that the process behind Terra tokens was flawed from the start because UST is not tied to a reliable collateral or profit scheme. <\/p>\n\n\n\n<p>\u201cAt a certain point in time, there is no other way but to collapse because it cannot handle interest payments and fluctuations in value,\u201d the authorities reportedly said.<\/p>\n\n\n\n<p>Luna investors sued Terraform Labs CEO Do Kwon and co-founder Shin Hyun-seun in mid-May, seeking a record of user accounts, marketing materials, and UST-related conversations. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-users-seem-not-to-trust-terra\">Users Seem Not To Trust Terra<\/h2>\n\n\n\n<p>Investors are said to have lost up to $44 million in deposited funds after LUNC fell 99 percent and UST lost its 1:1 peg to the US currency.<\/p>\n\n\n\n<p>Some accounts claim that Terraform Labs shut its South Korean unit days before the Luna and UST collapsed, with some assuming that Kwon closed the local operation to avoid paying taxes. <\/p>\n\n\n\n<p>Terraform Labs and its co-founder were finally fined $78 million by South Korea's national tax authorities for tax evasion.<\/p>\n\n\n\n<p>The announcement comes as Terraform Labs <a href=\"https:\/\/coinscreed.com\/staging\/terra-goes-live-with-new-blockchain-luna-airdrop.html\">relaunched Terra 2.0<\/a>, a new chain aimed at reviving the Terra ecosystem, on May 28. <\/p>\n\n\n\n<p><a href=\"https:\/\/coinscreed.com\/staging\/binance-ceo-cz-sets-to-support-terra-community.html\">Binance<\/a> and FTX, two major crypto exchanges, said they were working closely with the Terra team to promote the next airdrop to assist concerned individuals. <\/p>\n\n\n\n<p>Many <a href=\"https:\/\/coinscreed.com\/staging\/terra-luna-2-0-price-is-down-70-since-restart.html\">investors dumped on Terra 2.0 <\/a>as the new LUNA token became live, causing the price to drop by 70%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Korean authorities have summoned the staff of Terraform Labs for a full-scale inquiry into the collapse of UST and LUNC The South Korean government is apparently calling personnel of Terraform Labs, the company behind the Terra Network as well as the Luna (LUNC) and Terra USD (UST) tokens. South Korean Authorities Look Into Reason [&hellip;]<\/p>\n","protected":false},"author":29,"featured_media":28435,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[5949,7300],"class_list":["post-28423","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-south-korea-2","tag-terraform-labs"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/South-Korean-Authorities-Probe-Terraform-Labs-Over-Terra-Crash.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/28423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=28423"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/28423\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/28435"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=28423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=28423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=28423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}