Qishin Tariq · · 1 min readTerra employee faces probe over embezzlement allegations
South Korean police are investigating a Terraform Labs employee over embezzlement allegations, according to a report from Chosun Biz.
The Seoul Metropolitan Police Agency’s Cyber Investigation Division launched the probe following a tip-off earlier this month that an individual may have embezzled corporate funds.
The police have also asked local cryptocurrency trading platforms Upbit and Bithumb to freeze the Luna Foundation Guard – a nonprofit organization focused on Terra blockchain – to stop it from withdrawing corporate funds from accounts held at virtual currency exchanges.
However, the police-requested suspension is not compulsory under South Korean regulations, so providing assistance is at the discretion of the exchanges. Chosun Biz has not confirmed whether the withdrawal of funds has been restricted.
Terraform Labs’ Luna token and stablecoin TerraUSD (UST) recently saw their values plummet to almost zero after UST lost its peg to the US dollar.
South Korea-based investors in Luna and UST are planning to sue Do Kwon, the troubled crypto firm’s founder and CEO. LKB & Partners, one of the country’s top law firms, will also seek to seize Kwon’s property and may file a case against Terraform Labs co-founder Daniel Shin.
Editing by Miguel Cordon and Eileen C. Ang
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