A Terra employee is being probed in connection with the alleged misappropriation of Luna and Terra business cash, according to sources from South Korea. This embezzlement occurred in May 2021, according to reports.
The Seoul Police confirmed today that they are investigating an embezzlement case from last month where a TFL employee (not Do Kwon) allegedly stole bitcoins from the company's coffers.https://t.co/BBVqDoEvvD
— FatMan (@FatManTerra) June 7, 2022
The Seoul Metropolitan Police Agency’s Cyber Investigation Division got a tip earlier this month that a person may have embezzled business funds. As a result, the country’s police authorities blocked assets tied to the non-profit group Luna Foundation Guard.
The Luna Foundation Guard was designed to protect Terra project investors. The group’s first and most important purpose is to hold Terraform Labs responsible for the UST stablecoin’s management.
The Seoul Metropolitan Police Agency’s Cyber Investigation Division is now reviewing facts linked to the issue, according to information acquired from local publications. “We are identifying the person and checking whether there was genuine embezzlement,” a police official probing the financial crime was quoted as saying.
However, it is unclear where Terraform Labs’ CEO, Do Kwon, comes into all of this. Despite the fact that the entrepreneur has a reputation for not being the most trustworthy tech figure, it appears that he was not involved in the embezzlement.
Following the devastating collapse of Luna and TerraUSD, the Terra environment appears to be sliding out of hand. To make matters worse, Do Kwon is being investigated for tax evasion by South Korean officials. This case is being investigated by the Grim Reaper, a police team tasked with investigating financial crimes. To add insult to injury, Do Kwon has been sued by at least five Terra/LUNA investors.
