Korean prosecutors have launched an investigation into the recent Terra crash, JTBC reported on Monday. Although no sources were given, the report says the Seoul Southern District Prosecutors’ Office’s joint financial and securities crime investigation team is trying to find out if there were intentional price manipulations behind the collapse. The authorities have reportedly also reached out to former employees of Terraform Labs.
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While no name was revealed, one of the ex-employees reportedly told the authorities that some specialists at Terraform Labs voiced their concerns about the TerraUSD (UST) design architecture from the very beginning. Unnamed employees said they alarmed Terraform Labs CEO Do Kwon about issues, but he declined to fix them and continued the launch of the stablecoin.
TerraUSD (UST) collapsed earlier in May, losing its peg to the US dollar. At the time of writing, the stablecoin is trading at $0.02. Meanwhile, Terraform Labs doesn't seem to stop on its way as Do Kwon announced the launch of the Terra 2.0 main network, which has received the Phoenix-1 identifier.
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