Terra woes persist as employee accused of stealing Bitcoin

Sahana Kiran
South Korea

It seems like Terra is hit with a streak of bad luck. All things Terra has been under immense scrutiny and probe. Despite the launch of a brand new chain, the network continues to get backlash from the community as well as the regulators. While the network has been setting up LUNA 2.0, the South Korean police force slapped Terraform Labs [TFL] with yet another allegation. This, time Bitcoin was involved.

The South Korean government has been actively looking into the demise of the Terra and the impact it caused on the entire market. Meanwhile, a TFL employee fell under the radar of the Seoul Metropolitan Police Agency for allegedly embezzling Bitcoin.

A local news portal reported that police discovered that the employee was embezzling corporate funds back in May 2021. This further led them to urge a crypto exchange to freeze the funds that were involved in the embezzlement. The police reportedly said,

“It was intelligence about an employee’s personal embezzlement.”

Terra founder Do Kwon not involved?

The person who was blamed for the collapse of LUNA was none other than the creator of the network, Do Kwon. From lawsuits to his old comments resurfacing, Kwon continued to garner immense backlash from the community. While several speculate that he might have been involved in the embezzlement, the police affirmed that the relationship between Kwon and the employee was still under the wraps.

Additionally, as allegations against Terra kept flooding the crypto-verse, LUNA 2.0 was taking a major hit. Right after its launch, the asset was trading for $19.54. However, ever since it has fallen by 82.61 percent. During press time, it was trading for a low of $3.37 with a 22.16 percent drop over the last 24-hours.

Furthermore, the depletion of the altcoin was proof of how the community’s trust in the revamped network was still dainty.