Terra employees are now under this South Korean regulator’s radar

Sahana Kiran
Source – Pixabay

The entire globe witnessed the downfall of Terra. The damage it created seemed to have swept the entire market into the red sea. While the investors and developers of the network mourned the demise of LUNA and UST, a brand new chain Terra 2.0 made its debut over the weekend. As Terraform Labs [TFL] was celebrating the rollout of the revised network, South Korean regulators interrupted their launch party.

As per recent reports, the Joint Securities and Financial Crimes Investigation Team of the Seoul Southern District Prosecutor’s Office has called for all employees from TFL. While the creator of the network, Do Kwon was already under the purview of South Korean regulators, the employees including the developers were drowning in troubled waters.

An array of revelations pertaining to Kwon came to light following the demise of LUNA. More recently, prosecutors investigating the case garnered access to a statement that Kwon had forcibly released the asset. The employees that are now being dragged into the probe noted that the pilot model had failed and even had the ability to collapse at any point.

A Terra employee stated,

“Even at that time, there was an internal warning that it could collapse at any time, but CEO Kwon Do was forced to release the coin.”

In addition to this, prosecutors were also examining if Kwon manipulated prices. Thanks to this, local cryptocurrency exchanges were also being scrutinized. These exchanges would be evaluated based on their listing review process.

What’s happening with Terra 2.0?

The community’s trust in Kwona and Terra was on a thin string. While most of them believed that this would be a bigger fail than the first project, a few others had some hope left since the latest one did not entail UST.

Following its launch, LUNA 2.0 managed to surge to a high of almost $20. However, with a 75 percent drop over the last couple of days, the asset was trading for a low of $6.13, at press time.

Regulators from all across the globe currently have their eyes on Terra 2.0. With immense regulatory pressure, investors are likely to remain skeptical about investing in this revised version of Terra.