The South Korean authorities are set to dig deep into Terra fall with Terra staffs and documentation

Terra (LUNA) has surprised the whole global cryptocurrency market with its drastic fall in its price, despite being the popular stablecoin. The sudden instability in the stablecoin has provided multiple backlashes to Terra including the Founder, Do Kwon, and the entire Terra staff. Meanwhile, South Korea has launched a full investigation for the tax evasion and other regulations for LUNA tokens and the loss incurred to millions of crypto investors. It is definite that Do Kwon has committed some mistakes in creating the Terra blockchain and the ecosystem, but the Terra staff is under legal scrutiny now.

The financial and securities crime investigation team from Seoul Southern District Prosecutors Office has summoned the Terra staff to seek the key reasons for the instability of the algorithmic stablecoin. The Terra staff is under legal scrutiny to address the doubt whether there was price manipulation. But the employees who were involved with the LUNA project claimed that they had warned Do Kwon regarding the pilot model failure, still, he continued with the stablecoin project.

The investigative team wants to seek whether the negligence of Do Kwon and other executives of Terra has created this drastic consequence and there are millions of crypto investors as victims for investing in this stablecoin. The investigation has thickened because there are allegations that the National Tax Service has found evidence of a suspicious flow of transactions between Luna Financial Guard and Terraform Labs for tax evasion. Do Kwon is ordered to pay US$78 million to the South Korea National Tax Service as a severe tax evasion penalty.

The South Korean authorities have also asked Terra staff about the relevant documents, information, and materials, and also to surrender those. It is apparent that even when there was a sustainability question of Terra (LUNA) in this highly volatile cryptocurrency market, Do Kwon was determined to take it forward. They are looking into the potential price manipulation with multiple crypto exchange platforms as well as the listing process.

It has been reported that the South Korean authorities will launch a committee by the final week of June 2022 for further investigation of Terraform Labs and Terra staff. The committee will be focused on setting up tips on itemizing, crypto investor safety, as well as to disclosures. Do Kwon and his mistake have forced South Korea to set tougher crypto regulations in the future?