According to reports from South Korea, a Terra employee is being investigated in connection with the alleged embezzlement of Luna and Terra corporate funds. This misappropriation was reported to have occurred in May 2021.
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
Earlier this month, the Seoul Metropolitan Police Agency’s Cyber Investigation Division received a tip-off that an individual may have embezzled corporate funds. Following this, the police authorities in the country froze assets linked to the non-profit group Luna Foundation Guard.
The Luna Foundation Guard was established to safeguard investors in the Terra project. The group’s first and primary goal is to hold Terraform Labs accountable for the management of the UST stablecoin.
According to information obtained from local reports, the Seoul Metropolitan Police Agency’s Cyber Investigation Division is currently checking facts related to the case. A police official investigating the financial crime was reported saying: “We are identifying the subject and checking whether there was actual embezzlement.”
However, it is not clear how Do Kwon, the CEO of Terraform Labs, fits into all of this. Though the entrepreneur has a reputation for not being the most trust-worthy tech personality, currently, it seems as though he has no involvement in this embezzlement.
Following the disastrous downfall of Luna and TerraUSD, things seem to be spiraling out of control for the Terra ecosystem. To make matters worse, Do Kwon is also under investigation by South Korean authorities for tax evasion. The Grim Reaper, a police unit in charge of investigating financial crimes, is looking into this case. Adding insult to injury, at least five Terra/LUNA investors have filed lawsuits against Do Kwon.