Many in the crypto-verse watched in horror last month when Earth (quotation LUNA) lost its peg as a stablecoin and 99% of its value over the course of a week. In what appeared to be suspicious circumstances, these two coins that were formerly popular cryptocurrencies collapsed in a perfect storm, leaving the company and investors with huge losses and making cryptocurrency news in the worst possible way.
Naturally, in any financial sector, and especially in one that is still as new as cryptocurrency, collapses occur. It appeared that LUNA had developed a revival plan and was preparing for a comeback. In what Terraform Labs called “Revival Plan 2”, a new blockchain would be created that would work separately but in parallel with the old one. The old coins would be renamed Terra Classic and Luna Classic (LUNC), while the new coins would be Terra 2.0 and LUNA. Of course, many investors would be wary of a new attempt.
An Earth-ble moment for LUNA
Now, however, local news announces that South Korean authorities have launched a thorough investigation against the developers of Terra (LUNA). Terra (LUNA) is under the Terraform Labs umbrella, and the entire company will now be under investigation. The Joint Investigation Team on Financial Crimes and Securities of the Seoul South District Prosecutor's Office will conduct the investigation.
According to local South Korean media, the investigation team already has some key evidence to back up the claims. According to media reports, some Terraform Labs employees had doubts and saw warning signs about the currency's volatility leading to the collapse.
The announcement of this investigation came shortly after five Korean cryptocurrency investors filed a fraud and financial law violation report against Terraform Labs founders Do Kwon and Daniel Shin. These investors hired the law firm LKB & Partners to conduct the legal action. The study commented in a statement: "The design and issuance of the Moon and Earth to attract investors, but the inability to adequately inform them about the flaws and unlimited expansion of the Luna issuance amounted to defrauding investors." .
