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South Korean Authorities Investigate Terraform Employee Over Bitcoin Theft

2 mins
Updated by Geraint Price
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In Brief

  • Police are investigating a Terraform employee for possibly embezzling bitcoin.
  • This is yet another investigation being launched into the company.
  • Terra Classic and Terra continue to see heavy activity despite the investigations.
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South Korean authorities have launched investigations into a Terraform Labs employee over the alleged embezzlement of bitcoin.

Seoul police say the employee allegedly stole bitcoin personally from the company in May last year. There is no suggestion of wrongdoing by Terra’s CEO Do Kwon, nor is there any indication of the amount of bitcoin involved.

Prosecutors recently questioned Terraform Labs’ employees involved during the blockchain’s initial development. Sources indicated that the targeted employees were allegedly against the launch of the UST stablecoin over possible “fluctuations in value.”

Police have asked exchanges used in transacting the assets to freeze the employee’s accounts. 

The Terra community has been struggling with how to tackle the future, and these investigations will not help. A recent secret Terra chat leak exposed the level of chaos there was in the Terra rebirth plan.

All of these issues are taking place as Terra tries to find new life with Terra 2.0 and the LUNA 2.0 token. The networks are experiencing a tumultuous time, with extreme price swings and an increased number of users. 

Terra Classic and Terra 2.0 both functioning, despite investigations

The floodgates have opened as far as investigations are concerned, with several launched in the past few weeks. Multiple parties have also filed lawsuits against the company, complaining of fraud, among other charges. 

South Korea resorted to harsher laws on crypto by forming the Digital Assets Committee. The focus of which will be to unveil strict crypto regulations as part of consumer protection. 

This seems to be the case all over the world, with U.S. Treasury Secretary Janet Yellen saying subsequently that stablecoins had risks.

But despite these rumblings, the number of Luna Classic, as it is now known, holders has increased by 500% in just a month. The token price itself is a small fraction of what it once was. 

The new LUNA token is down 19% over the past 24 hours, and 82% down from its all-time high of $19.54.

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Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...
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