Terra’s CEO Being Investigated Over Alleged Price Manipulation of LUNA and UST

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Celsius Network

Following Terra (LUNA) and UST’s price drama, South Korean authorities have launched a comprehensive investigation into the demise of Terra ecosystem tokens LUNA and UST and its CEO and founder, Do Kwon.

According to local news outlet JTBC, authorities are investigating whether Terra’s CEO manipulated the prices of UST and LUNA to cause them to rise or fall for his own benefit.

Furthermore, authorities are looking into whether domestic exchanges in the country followed proper listing procedures and reviews before making Terra tokens available to the public.

Terra Surge Dissatisfaction

The development comes as a growing number of investors who suffered massive losses due to the Terra collapse continue to file complaints with the appropriate authorities.

Since the collapse of TerraForm Labs and its ecosystem tokens, dissatisfied investors who have filed complaints with the Seoul prosecutor’s office have risen to 78. According to reports, these investors lost 6.7 billion won ($5.4 million).

South Korea Launches a Series of Terra Collapse Investigations

Remember that Korean authorities made significant efforts to determine the root cause of the UST and LUNA crashes following the Terra disaster.

Authorities claimed that investigations into the matter had not been conducted properly, prompting the country to resurrect its specialized crime unit known as the “Yeouido Grim Reaper.”

The investigation unit comprises 40 people who work for various Korean enforcement agencies, including the Financial Services Commission (FSC).

Terra’s CEO has been the subject of numerous investigations in Korea since the demise of UST and LUNA. Kwon was allegedly investigated for tax evasion and will be fined $78 million.

Similarly, Terra’s CEO was summoned to appear before the Korean Congress to explain the precise cause of the crash to the country’s lawmakers.

Read also: Ethereum Founder Vitalik Slams Terra, Says 20% Investment Return is Impossible

Kwon Ignored Terra’s Collapse Warning

Following the failures of UST and LUNA, it appears that Korean authorities are not done with Terra. According to JBTC, many Terra employees recruited during the project’s early stages made shocking revelations to investigators.

According to the employees, before the launch of Terra tokens, Kwon was warned that the projects could fail in the future.

He, however, ignored these warnings and proceeded to release the cryptocurrencies to the public.

An employee said: “Even at that time, there was a warning inside that there could be a collapse at any time, but CEO Kwon Do-hyeong forced the coin to be launched.”

Related article: The Largest Cryptocurrency Exchange, Binance, Announces Support for Terra 2.0

Meanwhile, Terra has already begun compensating employees for their losses. The issuance of new LUNA tokens and the burning of excess UST reserves are both parts of the compensation plan.

Despite these changes, the coin’s value remains far below its all-time high (ATH) of more than $120 set last month.

At the time of writing, the newly launched LUNA tokens were trading for around $6.15.